While portraying the mood, the S&P 500 Futures print mild losses near 3,960 while tracking Friday’s downbeat close of Wall Street. Further, the US 10-year Treasury yields remain firmer around 3.58%. It should be observed that the US 2-year Treasury bond yields flash 4.35% as the latest quote.
In addition to the yield curve inversion, which portrays the recession woes, the recently firmer US data and comments from the US Treasury Secretary Janet Yellen also weigh on the market sentiment. matched the market forecasts of 7.4% YoY for November versus 8.1% prior. Further, the Core PPI rose to 6.2% YoY versus 6.0% expected and 6.7% previous readings. Additionally, preliminary readings of the University of Michigan’s Consumer Sentiment Index rose to 59.1 for December versus 53.
That said, US Treasury Secretary Janet Yellen said, “There's a risk of a recession, but it certainly isn't something that is necessary to bring inflation down.” Further, the economic slowdown fears could be linked to the yield curve inversion as the US 10-year Treasury bond yields and the two-year bond coupons portray a negative difference.
It should be noted that China’s gradual easing of the Zero-Covid policy and the recent stimulus, mainly to the struggling real-estate sector, challenge the market bears ahead of the US inflation numbers and the Federal Reserve’s monetary policy meeting. Other than that, the preliminary readings of December’s PMIs and monetary policy meetings of