People walk by the New York Stock Exchange last year. U.S. stocks fell Friday afternoon as recession fears returned.
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One of the bond market’s most reliable gauges of impending U.S. recessions was back in solidly triple-digit negative territory on Friday, as investors absorbed disappointing U.S. manufacturing-sector data and a spate of European central bank interest-rate hikes from Thursday.
The spread on 2- TMUBMUSD02Y, 4.770% and 10-year yields TMUBMUSD10Y, 3.753% was more than minus 100 basis points throughout much of Friday, after having intermittently drifted in and out of that level during the prior session. It’s at one of its widest levels since early March, a period dominated by fears about Silicon Valley Bank. Investors were in a risk-off mood on Friday, with Treasurys rallying by the most in a week and all three major U.S. stock indexes DJIA, -0.22% SPX, -0.04% COMP, +0.27% ending lower.
Continued Article: https://www.marketwatch.com/story/spread-on-2-and-10-year-treasury-yields-solidly-below-minus-100-basis-points-in-worrisome-sign-about-outlook-9892a509?mod=home-page
