The bond market is sending a scary message of recession, rate cuts and an unending trade war

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Investors rushed into the safety of bonds Thursday and sold stocks, as it appeared the trade war could be prolonged and more painful for the world economy than expected.

Treasury yields fell sharply, as the futures market priced in higher expectations for fed rate cuts.

Investors rushed into the safety of bonds Thursday and dumped stocks, as it appeared the trade war could be prolonged and more painful for the world economy than expected.Treasury yield dropping about 8 basis points in its biggest one-day move since April 1. At the same, traders in fed funds futures bet on the Fed making two quarter-point rate cuts by the middle of next year and possibly a third in the second half of 2020.

The 10-year yield fell below that of the 1-year for the second time this year. The so-called inverted yield curve has been a reliable sign of a recession if the move is sustained. The U.S. market was also following Europe's bond market. The German bund slipped to a low yield of negative 0.12%, reflecting concerns about the European parliamentary vote.that the Trump administration is prepared to slap tariffs on another $300 billion in Chinese goods, as no new talks are scheduled.

Later, around 3:50 p.m., President Donald Trump said he thinks things will probably happen fast with China.Though vague, that appeared to help lift stocks, while yields moved off lows.

 

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This is the outcome of efficient financial management!!!!

Think I’ve might have heard this before from CNBC...

And thank Donnie Trump for that

at 3:14 lerry talks about the 3 month to 10 year curve

Trade Wars are good and easy to win!

The Market is just throwing another HISSY FIT. You can have a good economy and a bad Market. Jobs are plentiful. The Market needs to understand, move your supply chain out of China, or suffer.

No recession yet. 2-10s have not inverted. It’s showing us pumped up growth of 3.2% correcting back to 2% normal growth. Could overshoot to 1.6% for a quarter. That’s a 35-40% drop in growth. Looks like a recession.

The world is going through a trade war

SpeakerPelosi Thank You Nancy for praying for Trump and the American People 🇺🇸

Yikes!

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