NEW YORK xx (Reuters) – A key part of the yield curve inverted on Tuesday, as the 2-year U.S. Treasury note yield briefly rose above the benchmark 10-year U.S. Treasury note yield for the first time since September 2019.
An inversion of the two-year, 10-year part of the curve is viewed by many as a reliable signal that a recession is likely to follow in one to two years. The 2s/10s curve briefly showed minus 0.03 basis point.
COMMENTS
RICK MECKLER, PARTNER, CHERRY LANE INVESTMENTS, A FAMILY INVESTMENT OFFICE, NEW VERNON, NEW JERSEY
“The stock market view that we’re not in for a recession is more likely to be true than the bond market view that we are. You’re seeing the ability of the economy to adapt to higher prices. There still remains tremendous liquidity in the system.”
“The Russia, Ukraine situation is far from settled in any way. A lot depends on how energy ends up playing out.”
JACK ABLIN, CHIEF INVESTMENT OFFICER, CRESSET CAPITAL MANAGEMENT, CHICAGO
“This is one more item that the bond market is concerned about that the equity market is shrugging off.”
“The bond market is sending multiple warning signals that the stock market has essentially shrugged off.”
(Compiled by the Global Finance & Markets Breaking News team)
