On Wednesday, August 14, equity markets pulled back sharply on weak data out of Germany and China, fueling investor concerns over global growth. Germany’s economy contracted 0.1 percent in the second quarter due to a decline in exports, whereas Chinese industrial production grew 4.8 percent in July, falling below the 5.9 percent forecast and noticeably down from 6.3 percent as of June. Amid the market tumult, investors rushed to the safety of Treasury bonds, resulting in the 10-year Treasury yield falling to 1.56 percent, while the 30-year Treasury yield hit an all-time low of 2.0 percent.
In recent months, numerous articles have highlighted the inverted yield curve and its implications. Please click the following link to read the article that summarizes recent market developments while also providing longer-term context.
Please click here to read our Research Insights: Yield Curve Inverts Further