What sagging bond prices are telling us about the U.S. economy | Metals Mine

  • What sagging bond prices are telling us about the U.S. economy

    From finance.yahoo.com

    Rising Treasury yields are sending a warning signal: Investors are worried that higher inflation could keep the Federal Reserve from cutting interest rates anytime soon. Treasurys, or bonds issued by the U.S. government, are considered among the safest investments in the world. Their yields move with investor demand and expectations for inflation, economic growth and Fed policy. That makes the bond market a closely watched gauge of investor sentiment, and something of an early warning system for a range of risks, such as fiscal concerns and even recessions. Inflation often leads the Fed to raise interest rates to ... (full story)

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