Treasury bond market investors are betting the Federal Reserve\u0027s interest rate hikes will drive the US economy into recession. Read more.
Higher interest rates make it more expensive for companies and individuals to borrow money, while an inverted curve can result in less lending by banks, all of which hurts the economy.
The Fed’s own estimates of where the economy will be by the end of the year have improved since the spring, suggesting the U.S. may avoid a recession.The U.S. stock market, after a panic during the most aggressive phase of the Fed’s monetary tightening, is back in bull market territory. Markets for riskier assets such as stocks and corporate credit have also reflected this optimism. The blue-chip S&P 500 share index is up about 14 per cent this year, though many analysts have attributed this rally to the growth in stocks tied to the boom inMeanwhile credit spreads — the premium investors demand to hold riskier corporate debt over risk-free Treasuries — have fallen on both junk-rated and investment-grade bonds in recent months.
The divergence may also be attributable to the muted impact, so far, of the yield curve inversion on big banks. Banks typically borrow at shorter-term rates and lend at longer-term rates.Article content
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
U.S. Treasury bond spree could jolt markets if leveraged bets unravelHedge funds built up record shorts on futures
Read more »
These are the 5 headlines you should read this morningThe search for the missing Titan sub continues, the highest price-fixing fine ever imposed by a Canadian court and Canada's 'official grievance' with Taylor Swift.
Read more »
Read the full story and comment on Tbnewswatch.comA Catholic elementary school officially opened their traditional medicinal garden
Read more »
These are the 5 headlines you should read this morningThe latest on the missing Titanic sub, the search for two missing RCAF members continues, and the feds will implement a new Canada Disability Benefit.
Read more »
No 'meeting of minds' as Alberta premier and federal ministers talk energy and climateBefore the meeting Smith said Ottawa can either get on board Alberta\u0027s plan for getting to net\u002Dzero emissions by 2050, or can get out of the way
Read more »
Federal byelections return seats to Liberals, ConservativesThe tightest byelection race was in the rural Ontario Conservative stronghold of Oxford
Read more »