U.S. bond market is sending recession warning, and Friday's jobs report could hold the next clue, Jeff Gundlach warns

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Falling U.S. bond prices are sending a signal that a recession could finally be around the corner as they push Treasury yields to 16-year highs.

Falling U.S. bond prices are sending a signal that a recession could finally be around the corner as they push Treasury yields to their highest levels in 16 years, said DoubleLine Capital founder Jeff Gundlach.

“The US Treasury yield curve is de-inverting very rapidly. Was at -108 bp a few months ago. Now at -35 bp. Should put everyone on recession warning, not just recession watch. If the unemployment rate ticks up just a couple of tenths it will be recession alert. Buckle up,” Gundlach said in a tweet. As of 3 p.m. Eastern Time on Tuesday, the spread between the yield on the 2-year Treasury BX:TMUBMUSD02Y and 10-year Treasury had narrowed to negative 34.7 basis points, with the 2-year at 5.148% and the 10-year BX:TMUBMUSD10Y at 4.801%, according to Dow Jones Market Data.

 

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Bond market is sending recession warning, and Friday's jobs report could hold the next clue, Jeff Gundlach warnsFalling bond prices are sending an alarming signal that a recession could finally be around the corner as they push Treasury yields to 16-year highs.
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