The bond market is flashing a warning sign that the US economy is heading for a rough patch, says Wall Street analyst Jim Bianco. has fallen to its lowest level since last September - and that suggests rising expectations of an economic downturn, according to him. A slide in market rates such as bond yields typically reflects bets for interest-rate cuts - a scenario that would accompany a sharp slump in growth.
to gauge the health of the US financial system. Most recently, the founder of market research firm Bianco Research highlighted heightened volatility in the bond market as a warning sign that trouble is mounting in the US banking sector – specifically that a run on deposits after the implosion of Silicon Valley Bank will continue, and lead to a credit crunch.