Alarm bells are ringing louder in bond markets.
Among the superlatives: the yield on 30-year Treasuries fell below 2% for the first time and the world’s pile of negative-yielding debt surpassed $16 trillion. And looming over it all was the 10-year Treasury yield dipping below the two-year, in what’s considered a harbinger of a U.S. economic recession in the next 18 months.
That expectation, nurtured in recent weeks by worsening U.S.-China trade relations and signs global growth is slowing, was bolstered by weak Chinese and German economic data. The so-called yield inversion drew the ire of U.S. President Donald Trump, who tweeted that Federal Reserve Chairman Jerome Powell is “clueless.”