Yield Curves Invert in U.S., U.K. as ‘Doom and Gloom’ Spreads

• The stream of investors seeking refuge in the safest parts of the market has triggered yet another recession warning, with yield curves inverting from the U.S. to the U.K.
• The gap between two- and 10-year yields dropped below zero on both sides of the Atlantic after a wave of soft economic data globally.
• Weaker-than-forecast Chinese retail sales and industrial output set the mood for the markets, with data later in the day showing Germany’s economy contracted, adding to the gloom.
• Investors have been driving into areas of the bond market that still offer a positive yield, typically longer-dated assets that offer better returns, in order to protect their funds from a global slowdown in growth. 

 (Source: Bloomberg)