S&P 500, US DOLLAR EDGE LOWER AS TREASURY YIELD CURVE INVERSION SUGGESTS RECESSION RISK LINGERSThe S&P 500 Index has slid
S&P 500, US DOLLAR EDGE LOWER AS TREASURY YIELD CURVE INVERSION SUGGESTS RECESSION RISK LINGERS
- The S&P 500 Index has slid over 2.25% from its all-time excessive of three,334 printed on January 22 as volatility returns and threat urge for food wanes
- Bond merchants stay skeptical of the current rally in equities judging by the Treasury yield curve unfold which has inverted once more for the primary time since mid-October
- USD/JPY may drop additional with the US Dollar weakening in opposition to the Japanese Yen amid lingering recession fears signaled by the Treasury yield curve
Markets could wish to take discover of the US Treasury yield curve seeing that it has simply inverted alongside the 10-year and three-month maturities as soon as once more. An inverted yield curve has traditionally served as a powerful barometer to gauge recession possibilities, which can show its use as a bellwether to the subsequent financial downturn as soon as.
International central banks have rushed to shore up slowing GDP growth by slashing benchmark rates of interest and boosting liquidity in hopes of extending the longest enterprise cycle in historical past, however bond merchants appear to be questioning whether or not the current tsunami of financial stimulus is sufficient to stop an finish to this bull market.
CHART OF US YIELD CURVE SPREAD: 3-MONTH, 2-YEAR, 5-YEAR & 10-YEAR TREASURIES
Chart created by @RichDvorakFX with TradingView
After a pointy…