By Yoruk Bahceli and Sujata Rao (Reuters) -U.S. two-year Treasury yields rose above 10-year borrowing costs on Monday – the so-called curve inversion that often heralds economic recession – on expectations interest rates may rise faster and further than anticipated. Fears the U.S. Federal Reserve could opt for an even larger rate hike than anticipated this week to contain inflation sent two-year yields to their highest levels since 2007. But a view is also playing out that aggressive rate hikes… Source link
Read More »Recession warning sign flashes as yield curve inverts
The market’s most closely watched part of the yield curve inverted Friday, and if its record over the last half-century is any indicator, the U.S. could be headed for a recession soon. But others say the Federal Reserve’s unprecedented firefight with high inflation makes this yield curve inversion different from those of decades’ past. On Friday, the yield on the 10-year U.S. Treasury bond ended the day at 2.38%, 6 basis points below the 2-year U.S. Treasury yield of 2.44%. This… Source link
Read More »Yield curve briefly inverted for first time since 2019
The market’s most closely watched part of the yield curve inverted very briefly on Tuesday. At 1:33 p.m. ET on Tuesday afternoon, Bloomberg data showed the yield on the 10-year U.S. Treasury note (^TNX) briefly dipping below the yield on the 2-year U.S. Treasury. The inversion lasted only a few seconds, and by 3:00 p.m. ET (the settlement time for U.S. government bond futures) the curve remained un-inverted with about 0.05% separating the two securities’ yields. Over the last half-century… Source link
Read More »The yield curve may be sending a recessionary signal
Bond king Jeffrey Gundlach has a lot on his mind as it pertains to markets when Yahoo Finance sits down with the DoubleLine founder at length inside his California estate on the first trading day of 2022. China isn’t a great market to be investing in, contends Gundlach. Stock valuations as measured by the DoubleLine favorite the CAPE ratio appear too rich, says Gundlach. But it’s Gundlach’s warning on the path of the U.S. economy — in part caused by looming interest rate hikes by the… Source link
Read More »Is the Fed behind the curve on inflation?
How fast does the Federal Reserve want to move on drawing down its pandemic-era stimulus? That’s the question that Fed officials will have to answer in its two-day meeting kicking off Tuesday, where the major discussion will focus on the pace of the central bank’s wind down of its asset purchase program. With inflationary pressures continuing to rise, Fed watchers expect the policy-setting Federal Open Market Committee (FOMC) to lean into a speedier timeline. On Friday, the Consumer Price… Source link
Read More »What is yield curve control: Yahoo U
For more business and finance explainers, check out our Yahoo U page. The market for U.S. government debt is among the largest, most liquid markets in the world. When yields on U.S. Treasuries move, so does everyone else. Because investors generally perceive U.S. Treasuries to be risk-free assets, their yields serve as proxies for interest rates. When the U.S. 10-year (^TNX) or 30-year bond yield (^TYX) rises, so do loans (business loans, mortgages) of comparable duration. For a central bank,… Source link
Read More »What is yield curve control: Yahoo U
For more business and finance explainers, check out our Yahoo U page. The market for U.S. government debt is among the largest, most liquid markets in the world. When yields on U.S. Treasuries move, so does everyone else. Because investors generally perceive U.S. Treasuries to be risk-free assets, their yields serve as proxies for interest rates. When the U.S. 10-year (^TNX) or 30-year bond yield (^TYX) rises, so do loans (business loans, mortgages) of comparable duration. For a central bank,… Source link
Read More »What is yield curve control: Yahoo U
The Guardian ‘Yay!’: WSJ issues correction after stray word inadvertently inserted in story Paper says word was inserted ‘during editing of an article on Friday about Connecticut’s Covid-19 restrictions’ The Wall Street Journal building at 1155 6th Avenue in New York City. Photograph: Michael Nagle/Getty Images Wall Street Journal editors working from home in Connecticut fell under suspicion on Monday, when the paper published an unusual correction. “The stray word ‘Yay!’ was… Source link
Read More »Yahoo U: Yield Curve Control
The Conversation 10 years after Fukushima, safety is still nuclear power’s greatest challenge An International Atomic Energy Agency investigator examines Reactor Unit 3 at the damaged Fukushima Daiichi plant, May 27, 2011. Greg Webb, IAEA/Flickr, CC BY-SATen years ago, on March 11, 2011, the biggest recorded earthquake in Japanese history hit the country’s northeast coast. It was followed by a tsunami that traveled up to 6 miles (10 kilometers) inland, reaching heights of over 140 feet (43.3… Source link
Read More »Yahoo U: Yield Curve Control
Yahoo Finance’s Brian Cheung joins the Yahoo Finance Live panel with today’s Yahoo U: Yield Curve Control Video Transcript ZACK GUZMAN: Inflation expectations continue to run hot. And today, the yield on the 10-year briefly hit 1.62%. What might the Fed do to react to all that? And what kind of pressure are they facing here? It’s got a number of tools at its disposal. And one we’ve been hearing a lot about recently, that would be a yield curve control. But what does that even mean? Here to… Source link
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