Posted on 04/06/2023 3:33:11 AM PDT by EBH
The yield on the 10-year US Treasury note has fallen to its lowest level since last September. That is a warning sign that storm clouds are gathering over the US economy, says Jim Bianco. Recession fears are back in focus for investors thanks to the recent banking turmoil and weak jobs data. The bond market is flashing a warning sign that the US economy is heading for a rough patch, says Wall Street analyst Jim Bianco.
The yield on the 10-year US Treasury note has fallen to its lowest level since last September - and that suggests rising expectations of an economic downturn, according to him. A slide in market rates such as bond yields typically reflects bets for interest-rate cuts - a scenario that would accompany a sharp slump in growth.
On Thursday, the rate on 10-year Treasury debt fell to 3.27%.
"Rising or falling rates are neither bull nor bearish for risk markets like stocks or credit. It depends on why they are rising or falling," Bianco said in a Thursday tweet.
"In this case, why are rates falling? Because the economy is fine, and inflation is returning to a long-run rate of 2%? If so, this is bullish for risk assets. Or are rates falling because storm clouds are gathering over the economy, led by worries in the banking industry? If this is the case, this is not bullish for risk assets," he added.
(Excerpt) Read more at msn.com ...
This can’t be right. Joey Crappy Pants and his Stupid Little Troll Janet Yellen say the Economy is Strong.
Economists and Bankers just haven’t read Joey’s memo yet.
FJB and his Entire Administration of perverts, pedophiles, sexual deviants and utter Morons.
LOLOL…he sounds like a typical so-armed economist:
“On the one hand, falling rates could be bullish. But, on the other hand, falling rates could be bearish.”
This may have to do with the fallout from the SVB collapse. There’s a rush to safety (guvvies) and the 10-year note is about as far out as any institution wants to go (with good reason—10 years is a sweet spot).
How much of the yield on the 10 year Treasury notes is market and how much is manipulation?
This lower yield helps the market price of the old go up and rescues more banks.
And look at the bitchin' credentials....
Zahra Tayeb covers markets at Insider where she regularly writes about stocks, commodities, currencies and crypto. She previously covered business news, reporting on the global space industry, tech, retail and healthcare. Prior to joining Insider, Zahra worked as an Editorial Intern at Wonderland Magazine. Previously, she was a freelance journalist for Women's Wear Daily and has interned for magazines and international broadcast news organisations including Condé Nast Traveller and BBC. Zahra is a graduate of King's College London.
LOL…what solid credentials! Does not surprise me one bit. AI could do better than her.
So he will say he right no matter what:-)
This administration is lying it’s collective asses off trying to keep the populace believing in them.
Get your assets in the safest place you can.
Back in the 1960s, I was reading articles declaring the U. S.
didn’t have long to wait until a day of reckoning was coming.
I don’t think things look good right now, but I’m not
convinced we are done.
If the U. S. took it’s 16.66% of China’s foreign trade off
the table, it would be a severe blow to a nation already
with as many financial issue as we do.
Their banking system is on life support also.
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