Shifting Bond Yield Curve Scrambles Market’s Recession Signal
- The yield curve is less inverted after jump in long rates
- Spurred by strong economic data, it adds a new drag on growth
The US Treasury in Washington, DC.
Photographer: Al Drago/BloombergThis article is for subscribers only.
The US bond market is on the move, rapidly shifting from warning of a recession to signaling interest rates are staying higher for longer.
To see the change in sentiment, look no further than the Treasury yield curve — the graph plotting the level of interest rates on federal government bonds maturing anywhere from one month to 30 years.