This Market Indicator That Frequently Signals a Recession Just Flashed Red

[Dulcinea]

The bond market just flashed a big warning sign for the economy.

For the first time in a decade, a part of the yield curve inverted. On Monday, the yield on the five-year Treasury note slipped below yields on shorter-dated three-year notes, according to a report in Bloomberg.

Typically, bonds with longer maturities offer higher yields, as investors demand greater compensation to keep their money locked away for longer time periods. However, when investors expect interest rates to decline in the future — typically because of a weak economy — they scramble to lock in today’s comparatively high interest rates for as long as possible. By bidding up the prices for long-term bonds, investors can send longer-term bond yields downwards — even, at times, to the point where they fall below yields on shorter-term bonds.

http://time.com/money/5470430/market-indicator-signal-recession/

[Wellstone ruled]

1. Caught that bit

on the Bloomberg overnight Sunday .. Commentator mentioned the same timing of financial events with the collapse of Lehman Brothers.

Included in that segment was this,JP Morgan's Statement about how Cash will be the new growth item.

Meaning watch out below,something is about to fall big time.

[marble falls]

2. Part of this is because China has cut back on T note purchases as a result cheetolini's tariffs.

[dalton99a]

3. It's inevitable.