Recession fears are flaring as Trump's trade war has markets behaving in a way not seen since the fi
If you want evidence of how President Donald Trump's trade war is affecting investor nerves, look no further than the widespread damage inflicted upon US stocks in recent days.
Beyond that, if you're looking for a hint as to what the future holds, an even more ominous signal is forming in the Treasury market.
The metric in question is the spread between two- and 10-year Treasury yields, which has fallen to its lowest level since 2007 — the period immediately preceding the most recent financial crisis.
While short-term interest rates are almost always lower than their long-term counterparts, the difference between the two tends to tighten when investors are paying more for near-term protection. That flight to safety would seem to match the spike in investor nervousness seen as trade-war fears have escalated.
https://www.msn.com/en-us/money/markets/recession-fears-are-flaring-as-trumps-trade-war-has-markets-behaving-in-a-way-not-seen-since-the-financial-crisis/ar-AAzbvju?li=BBnb7Kz