Every other asset class is priced relative to the bond market. The bond market is the foundation for the entire economic system. Bonds guarantee a fixed rate of return and are the supposedly the safest form of investment. Every other investment is priced off the bond market.I know Jack about these things. Should we be happy or worried?
But typically accompanied by rising high yield spreads - which isn't happening.U.S. bond market recession gauge nearer to red signal: Reuters poll
(Reuters) - An inversion in U.S. Treasury yields, a solid and reliable predictor of past recessions, is at most two years away and perhaps only a year off, according to bond market experts polled by Reuters who have brought their forecasts nearer.
While there is still plenty of optimism around the global economy, there are signs that growth in several economies has already peaked, putting a brake on stock markets and sending rising bond yields back in the other direction.