46.8 F
Fort Worth
Sunday, November 29, 2020
Banking Signal of a downturn?

Signal of a downturn?

Other News

Exxon’s oil slick

Exxon Mobil is slashing its capital spending budget for 2020 by 30% due to weak demand caused by the COVID-19 pandemic and a market...

Folk music’s Mark Twain: 7 Essential tracks from John Prine,

NEW YORK (AP) — Some people, the songs just come out of them. For nearly half a century, they tumbled out of John Prine...

Tarrant County records another COVID-19 death

Tarrant County Public Health (TCPH) on Wednesday, April 8 reported that a resident of Euless has died as the result of the COVID-19 virus....

Tradition stymied: A year unlike any since WWII for Augusta

The Masters is so intertwined with Augusta, they added an extra day to spring break.You see, the first full week of April isn't just...

The bond market has begun signaling that it

expects the U.S. economy to slip into an economic


The signal is coming from U.S. Treasury yields

— the amount that investors earn on

their investment. Bonds with longer

maturities typically yield more

than short-term bonds, as

investors expect to get paid more

for lending the government

money for a longer


But twice this year

the yields on two

widely traded bonds

inverted — investors are

now willing to pay more

for short-term safety than for longer-term bonds.

The signal doesn’t have a perfect track record

as a recession predictor, but it has preceded each

of the last seven by a year or two.

The yield curve inverted in

February 2006, at the height

of the housing bubble and a

year before the financial

crisis began. It also

inverted in July 2000, as

the dotcom bubble was

starting to burst. The U.S.

economy would slip into a

short recession in March

2001. The yield curve also

inverted shortly before the

recession of 1990-1991


Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

COMMENTARY: Student debt in a stimulus package is not a good solution

Making education more affordable and accessible is critical to our future, but simple, across-the-board debt forgiveness is not the best policy. Student debt has been...

Literacy Accord of the city, the Fort Worth ISD and Read Fort Worth formalized

Read Fort Worth, Fort Worth ISD and the City of Fort Worth have reaffirmed their commitment to assuring that FWISD PK-3rd grade students continue...

A North Texas superintendent is openly defying the state mask mandate in schools. No one is stopping him.

At Peaster Independent School District, 40 miles northwest of Fort Worth, Superintendent Lance Johnson has said masks are optional in his school district buildings...

Stocks edge higher on Wall Street on latest vaccine hopes

NEW YORK (AP) — U.S. stocks edged higher in morning trading Monday after investors received several pieces of encouraging news on COVID-19 vaccines and...

$76M new nursing, social work building approved for UTA

The University of Texas at Arlington received approval on Nov. 19 for its design plans and funding of a new building that will house...