The Federal Reserve’s bid to contain the hottest inflation in decades will end in a recession. That’s the message the bond market is telegraphing.
Key sections of the Treasury curve have inverted after Friday’s US inflation shock drove traders to boost bets on the pace of Fed tightening. Two-year yields exceeded 10-year rates for the first time since April on Monday, while five-year yields soared as much as 17 basis points above 30-year rates in the widest inversion in over two decades.
