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Trade issues ‘won’t cause a bear market’ as U.S. economy is in ‘very good shape, says Blackstone’s Wien

Chris Matthews
Trade issues ‘won’t cause a bear market’ as U.S. economy is in ‘very good shape, says Blackstone’s Wien

The yield on the 10-year Treasury note (BX:TMUBMUSD10Y)has fallen nearly 11% in May, so much that it sunk below the yield on 3-month Treasury bill, a phenomenon called an “inversion” in the yield curve, because longer maturity bonds typically yield more than shorter-maturity securities. An inverted yield curve is often a reliable predictor of a recession in one to two years’ time, as it signals bond investors believe economic growth will be lower in the future than today.