{"id":589307,"date":"2023-06-25T00:00:00","date_gmt":"2023-06-25T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/25\/us-bond-markets-convinced-recession-is-brewing\/"},"modified":"2023-06-25T00:00:00","modified_gmt":"2023-06-25T00:00:00","slug":"us-bond-markets-convinced-recession-is-brewing","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/06\/25\/us-bond-markets-convinced-recession-is-brewing\/","title":{"rendered":"US bond markets convinced recession is brewing"},"content":{"rendered":"

<\/span>Bond investors are stubbornly pessimistic on the US economy: <\/span>Investors in US <\/span>treasuries continue to wager that the Federal Reserve\u2019s interest rate hikes will push the US economy into a recession, against analysts\u2019 predictions and stock market optimism, the <\/span>Financial Times<\/a><\/span> reports. Yields on short-term US government bonds surpassed those on long-term bonds by the widest margin in three months last week \u2014 a phenomenon known as the inverted yield curve that has preceded every recession in the past five decades. \u201cA shallow recession by the end of this year, or beginning of next year, is our base case scenario,\u201d one portfolio manager told the FT. <\/span><\/p>\n

Slow business activity data signals sluggish global recovery:<\/span> Flash PMI data for <\/span>the world\u2019s four biggest economies showed business activity continuing to rise in June, although the data indicated the slowest rate of expansion since February, according to <\/span>S&P Global<\/a><\/span>.<\/span> The eurozone\u2019s flash PMI \u201c[pointed] to renewed weakness in the economy after the brief growth revival recorded in the spring,\u201d <\/span>dropping to 50.3<\/a><\/span> \u2014 its lowest since the beginning of the year. The bloc, along with the UK, the US, and Japan, saw a significant slowdown in the services sector and continued weakness in manufacturing. <\/span><\/p>\n

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