Yield Inversion Continues in US Bond Markets on Thursday

US government debt prices edged higher on Friday over continuing fears of the US-China trade war


US government debt prices edged higher on Friday over continuing fears of the US-China trade war and its impact on financial markets worldwide. The yield on the 10-year Treasury note fell to 2.1731% while the yield on the 30-year Treasury note touched 2.6150%.

Even as trade tensions with China show no signs of abating, US President Trump announced a 5% tariffs on Mexican imports from June 10. Investors are concerned about what these new duties mean for the USMCA trade deal which is awaiting ratification.

Markets have turned their attention to US bond markets for clues on economic climate. As bond yields on long term debt falls below that of the short term bond yields, there is worry that this yield inversion is signalling a potential recession in the US economy in the near future.

ABOUT THE AUTHOR See More
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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