Trade War Fear Deepens U.S. Yield Curve Inversion

Financial Times: “The inversion of the U.S. yield curve, a measure investors view as the surest predictor of an impending recession, on Monday became deeper than at any point since the onset of the financial crisis a decade ago, as the U.S.-China trade war spread to the currency markets.”

“The difference between the yield on three-month Treasury bills and the benchmark 10-year bond, which has turned negative or ‘inverted’ before every U.S. recession of the past 50 years, widened to minus 32 basis points at its worst.”