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Business and Finance
Reuters
Strong bond market indicators of a global recession
The 30-year US Treasury yield has fallen to its lowest level, trading below 2% for the first time in history.
US 30-year bonds traded Wednesday at 1.982% and US 10-year yields fell to 1.263%.
The graph below illustrates the performance of 30-year US bonds during transactions:
Bloomberg
At the same time, UK bond yields fell for the first time since the global financial crisis, falling to 0.475%, which badysts saw as another sign of the possibility that the global economy is entering recession.
This is a strong indicator of the recession, highlighting growing worries about the global economy as investors rush to safe haven badets, according to Bloomberg.
This comes after negative data from China and Germany, where data showed a slowdown in Chinese industrial production, as the German economy shrank in the second quarter of this year.
"We are heading towards a global recession and central banks have little ammunition to deal with it," said Nader al-Nuaimi, Head of Dynamic Markets at AMB Capital Investors Ltd. in Sydney, according to Bloomberg.
"It's a very unusual period," said Arthur Bbad, managing director of fixed income, futures and interest rates at Widbosch Securities.
In contrast, gold prices rose about 1% on Wednesday as investors sought a safe haven from growing fears of a global recession after weak data from the Eurozone and China, according to "Reuters".
Source: agencies
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