Economics
Bond Markets’ Tea Leaves Send Sobering Signal: Trouble Is Ahead
- U.S. services, manufacturing data give recession warning
- It’s a ‘massive move’ into deepest, most liquid debt markets
Source: Getty Images
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The world’s biggest government-debt markets are sending a clear signal that global economic growth is stalling and inflation expectations are fading fast.
That sobering message is evident in tumbling yields on Treasuries and German bunds, in bond-market inflation metrics projecting further declines in price pressures and in a gauge that shows investors see no need for extra compensation to load up on long-term debt. The theme was reinforced Thursday as a surprisingly weak reading on the American service industry compounded the angst from reports showing manufacturing already faltering around the globe.