The US bond market posted an inverted yield curve for the third day in a row, as the yield on the two-year US Treasury surged past 3% and jumped above the five- and 10-year-olds amid concerns the US economy faces. Recession as the Federal Reserve (Fed) has accelerated to raise interest rates to curb inflation.
At 7:40 p.m. Thai time, yields on two-year government bonds jumped to 3.002%, with yields higher than five-year bonds, which stood at 2.998%. 10 years at 2.954%
The US bond market has an inverted yield curve, with short-term bond yields jumping above long-term bonds. which indicates the trend of an economic recession
In the past, the inverted yield curve was often caused by investors selling short-term bonds. and buy long-term bonds Amid concerns about the economic situation in the short term Investors are worried that the US economy will be hurt by the Fed raising interest rates to curb inflation.
Investors are worried about the US economy. After the Fed has signaled the economy has entered a recession.
The Atlanta Fed revealed that The latest GDPNow forecast model shows that The US economy contracted 2.1% in the second quarter, from an earlier indication of a 1.0% contraction.
GDPNow forecasts show that the US economy contracted in the second quarter more severely than the 1.6% contraction in the first quarter, indicating that the US economy has entered a recession. because the economy contracted for 2 consecutive quarters
The Atlanta Fed will report new GDPNow forecasts today. The Commerce Department will release its first estimate for its second quarter gross domestic product (GDP) on July 28, which will confirm whether the US economy has entered a recession.
Fed Chairman Jerome Powell said earlier that The Fed is committed to curbing inflation. Although the use of a tightening monetary policy will slow down economic growth. But it will not create a serious risk.
“We are committed to using all the tools we have to bring inflation down. This action is to reduce economic expansion. which despite the risk But I don’t see this as the biggest risk to the economy. More than likely a mistake is a failure to stabilize the price,” Powell said.
Investors eyeing the release of non-farm payroll numbers tomorrow. by analysts that The number of jobs added only 250,000 in June. Below 390,000 positions in May and the unemployment rate is expected to remain stable at 3.6%.