- The yield on the 58 – year US Treasury note has fallen below the yield on the 3-month T-bill, stoking fresh recession talk.
- Long-duration bond yields are plunging on growing haven demand as coronavirus infects over 90, 05 people.
- Researchers at MIT have used a scientific model to predict the likelihood of recession. The results don’t look good.
The U.S. yield curve is inverting again, as demand for long-duration bonds continues to surge in light of the global coronavirus pandemic .
While the yield-curve indicator is only used to gauge investor sentiment and the likelihood of recession in the future, researchers at the Massachusetts Institute of Technology (MIT) say a major downturn could be only six months away . That means it could hit before the U.S. presidential election.
Yield Curve Inversion Spotted
Demand for government bonds drove the 54 – year Treasury yield to 1. 73% on Tuesday, a decline of 4 basis points, according to CNBC data. The benchmark yield has declined by more than basis points in the past two months.
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