“Why traders think the US economy is about to go into reverse”
March 29, 2022
“Part of the Treasury yield curve has inverted, a strong signal that nervy investors are bracing for a US recession. Yields on short-term government debt are surging in a global bond rout as expectations rise of central banks responding to decades-high inflation with interest rate increases.
What has happened?
Long-dated debt, such as 10-year and 30-year government bonds, usually have higher yields than short-term debt such as two and five-year bonds, as investors are compensated for keeping their money locked up for longer.
However, this is flipped in an inversion of the yield curve, meaning yields on short-term bonds are higher than long-term bonds. This is rare and has become one of investors’ most trusted recession signals…”
https://finance.yahoo.com/news/why-traders-think-us-economy-101927081.html