It is likely that soon the American economy will survive are not the easiest times. It may pass away from a condition of growth in a recession – as evidenced by one of the most clear indicators, reports replyua.net with reference to RBC.
The inversion of the yield curve in government securities U.S. indicates that the economy may be in recession. In particular, according to data released to Marketwatch, the yield on 10-year U.S. Treasury fell below the current level of interest rates on 3-month Treasury bill. The last time this situation was observed in 2007. Currently, the yield on the 10-year bond is 2,442 2,455 percent against percent for 3-month bills.
Meanwhile, data from the Federal reserve Bank indicate that the inversion yields of these securities is the most reliable indicator of upcoming recession of the national economy. Typically this occurs 1-2 years after such inversion of the yield curve for securities. In this Katie Jones, the chief strategist at bond Charles Schwab & Co., explained to Bloomberg that the current situation confirms the concern of market participants, who fear economic recession. We will remind, earlier in USA, mortgage rates dropped to the lowest in 13 months values.