NPR: Dow Tumbles 800 Points As Bond Markets Signal Recession
An even bigger worry: The yield on the benchmark 10-year Treasury note fell below 2-year Treasuries for the first time since 2007. In other words, you would get a higher interest rate for government debt that matures in two years than in 10 years.
Such an inversion in yields has a strong track record of predicting a recession, especially the longer it continues. Each of the last seven recessions, dating back to 1969, were preceded by the 10-year falling below the 2-year.
This is not good, y’all.
Notes & Thoughts 