Asia stocks set to decline as bond markets signal recession warning

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Shares in Asia were set to trade lower at the open on Thursday after the main yield curve in U.S. Treasurys inverted overnight, triggering fears over the state of the U.S. economy.

Investors will be watching the bond market today, after the yield on the benchmark 10-year Treasury note briefly broke below the 2-year rate overnight, an odd bond market phenomenon that has historically been a reliable indicator of economic recessions.

Futures pointed to a sharply lower open for Japanese stocks. The Nikkei futures contract in Chicago and Osaka were both at 20,100, as compared to the Nikkei 225's last close at 20,655.13.

 

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All non-U.S. markets follow the US market. Saved you... whatever

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