Bond Traders Go All-In on US Recession Bets…

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via YAHOO:

Bond investors are piling into wagers that a US recession is around the corner amid a growing dissonance between how markets and the Federal Reserve see the outlook for the economy.

“Inflation is still high, but the bond market is saying we are heading into a major slowdown,” said Kenneth Taubes, chief investment officer at Amundi Asset Management US. A steeper Treasury curve after the Fed quarter-point hike “is not a typical response” and it shows a market “looking at hikes as being another nail in the economy.”

For months, the market has been fixated on curve inversion — in which rates on policy-sensitive notes climb above those on longer maturities — as a harbinger for a recession in the not-too-distant future. Now, though, the unwind of that inversion as front-end yields plummet is telling market watchers that a recession is just around the corner. Two-year yields have plunged so much they briefly slipped below 30-year rates for the first time since September, reflecting expectations that rate cuts will start coming in a matter of months.

Starwood Capital CEO Barry Sternlicht Warns of Impending Economic Implosion

Billionaire investor and CEO of Starwood Capital Group, Barry Sternlicht, has issued a dire warning about the state of the U.S. economy. According to Sternlicht, the country is on the verge of an economic implosion that could lead to a hard landing if swift action is not taken to lower interest rates.

 

Recession Odds Rising. We’re basically already in one, though all the money-printing has produced distortions that make it less obvious.

Meanwhile in China: