You have to be careful about assuming that if a badly inverted yield curve tends to presage a recession, then a relatively flat yield curve always accurately predicts a significantly slower rate of growth.
More Quotes from John Lonski:
The biggest threat to the bond market looking ahead 6-9 months is what becomes of overseas economies. Let us not forget that the Federal Reserve cut interest rates three times in 1998 because of the unexpected severity of overseas economic slumps.John Lonski
We have hard evidence that there has been a pullback of foreign buying of U.S .Treasury securities, ... But more importantly, faster economic growth abroad will be to the benefit of the U.S. economy, will provide a boost to corporate revenues, perhaps add to the demand for labor, which can only increase inflation risks and puts more pressure on the Fed to eventually hike interest rates again.
John Lonski
It makes sense to sell 30-year bonds now. This is an attractive opportunity to extend maturities.
John Lonski
What we have here is a dangerous mix of fast-growing debt and fast-rising unemployment that could quickly put the brakes on consumer spending.
John Lonski
This is a day the bond should have been off by a half a point, ... U.S. interest rates are extremely indifferent to economic data right now.
John Lonski
It makes it more difficult to realize a recovery in the bond market, and one of the reason why we're getting a sell-off in the bond market, I believe, is because investors are more convinced that the world economic crisis is over.
John Lonski
Readers Who Like This Quotation Also Like:
Based on Keywords: presageEnsuring Americans have access to adequate medical care should be a priority for all of us.
Dave Reichert
Laws and constitutions ought to be weighed... to constitute that which is most conducing to the establishment of justice and liberty.
Algernon Sydney
I am working on my nightclub act, definitely want to do more singing.
Keith David