The gap between 10-year and two-year Treasuries has narrowed by about 60 basis points since the start of the year,
The U.S. Treasury yield curve is increasingly pointing to the risk of an approaching recession, with markets clearly doubting the U.S. Federal Reserve’s plan to engineer a “soft landing” for the economy as it hikes interest rates to fight inflation.
“The market seems to be challenging the soft-landing view for the US economy that the Fed argued at the March FOMC meeting”, BofA strategists said in a note to clients on Monday. “The recent 2s10s curve dynamics reflect recession risks, and not just through the curve’s extreme flatness at the inception of the Fed tightening cycle”, said the BofA strategists.
Australia Latest News, Australia Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Feds considering incentives for Canadians looking to help incoming UkrainiansThe federal government is considering offering economic support to Canadians who are willing to take in Ukrainians who are fleeing the war, according to Minister of Immigration, Refugees and Citizenship Sean Fraser.
Read more »
Hedge funds go long U.S. dollars, curve steepeners before Fed lift-offData reveals the biggest shift in favour of two-year Treasuries futures in over a year
Read more »
A global economic Cold War is comingIf the confrontation with Russia spreads to China, the result could easily be worldwide recession, stock market crash
Read more »
DIY investors seems woefully unprepared for the next market crash. Plus, can HDIV’s 8% yield be trusted?A roundup of investment ideas for active investors
Read more »
Police blockades bring Saturday peace and quiet to neighbourhood around B.C. legislatureVictoria police said “controlled access points” designed to limit traffic into James Bay \u0022will be in place for as long as is necessary for us to keep the…
Read more »
B.C. has a public land registry to fight money laundering in the housing market. Should Ontario?A B.C. report found money laundering led to a spike in real estate prices in that province.
Read more »