On Monday, 2- and 5-year Treasury yields inverted, meaning the shorter dated 2-year money became more expensive than the later maturing 5-year. The same happened with 3- and 5-year spreads for the first time in 11 years. Concerns about global growth slowing and higher interest rates, coupled with simmering trade-war tensions, are thought to be behind the inversions.
businessinsider.com
DoubleLine CEO Jeffrey Gundlach believes that the recent inversion of the U.S. Treasury yield curve is a signal that the economy is set to weaken.
The so-called “bond king” told Reuters that the phenomenon is predicting that the “economy is poised to weaken.”
cnbc.com
U.S. government bond prices rallied back from early losses Monday, sending the yield on the 10-year Treasury note to a close below 3% for the first time since September.
The yield on the benchmark 10-year U.S. Treasury note settled at 2.990%, its lowest close since Sept. 13, compared with 3.013% Friday.
wsj.com
Stocks fell on Tuesday as investors worried about a bond-market phenomenon signaling a possible economic slowdown. Lingering worries around U.S.-China trade also sent jitters down Wall Street.
The Dow Jones Industrial Average fell 559 points, led by losses in Caterpillar. The S&P 500 declined 2.2 percent to trade below its 200-day moving average as the financials sector lagged. Utilities was the only positive sector in the S&P 500, rising 0.9 percent. The Nasdaq Composite also dropped 2.5 percent.
cnbc.com