FILE- In this March 13, 2019, file photo traders gather at the post that handles Oaktree Capital Group on the floor of the New York Stock Exchange. The U.S. stock market opens at 9:30 a.m. EDT on Friday, March 22. (AP Photo/Richard Drew, File) One of the most closely watched predictors of an economic recession reached an ominous target Friday. For the first time since before the latest recession, a Treasury bill maturing in three months yielded more than a Treasury bill maturing in 10 years. Signs that investors are losing confidence in the economy roiled Wall Street. The S&P 500 index dropped 54.17 points, or 1.9 percent, to 2,800.71. The Dow Jones industrial average gave up 460.19 points, or 1.8 percent, to 25,502.32. The Nasdaq composite, which is heavily weighted with technology stocks, slid 196.29 points, or 2.5 percent, to 7,642.67. The Russell 2000 fell 56.49 points, or 3.6 percent, to 1,505.92. Economists call the Treasury bill development an inverted yield curve. … [Read more...] about Treasury bills’ moves raise fears, zap stocks
10 year t bill yield
Christopher Anstey and Abhishek Vishnoi, Bloomberg Published 7:32 am PST, Friday, February 8, 2019 A bull statue stands outside Amsterdam Stock Exchange in Amsterdam on Jan. 7, 2019. A bull statue stands outside Amsterdam Stock Exchange in Amsterdam on Jan. 7, 2019. Photo: Bloomberg Photo By Jasper Juinen. Photo: Bloomberg Photo By Jasper Juinen. Image 1 of / 1 Caption Close Image 1 of 1 A bull statue stands outside Amsterdam Stock Exchange in Amsterdam on Jan. 7, 2019. A bull statue stands outside Amsterdam Stock Exchange in Amsterdam on Jan. 7, 2019. Photo: Bloomberg Photo By Jasper Juinen. All of a sudden, the New Year market rally looks under threat 1 / 1 Back to Gallery … [Read more...] about All of a sudden, the New Year market rally looks under threat
The current fight -- and now 19-day federal government shutdown -- over funding for a U.S.-Mexico border wall could look simple when you consider the logistics of actually building the fabled barrier: It would take an estimated 10,000 construction workers more than 10 years to build the kind of 1,000-mile wall that President Donald Trump has said he wants. Even the more modest $5.7 billion in wall funding that Trump directly requested during a prime-time Oval Office address Tuesday to address what he called "a growing humanitarian and security crisis" would take an army of 10,000 workers more than two years to build and yield only 230 miles of barrier, according to estimates. And even at 1,000 miles long, the steel-slatted border wall would still be too small to be a boon for U.S. steel-makers.The full version of Trump's envisioned border wall -- featuring rarely tested heights cast over almost unimaginable distances -- would cost at least $25 billion, said Ed Zarenski, who teaches … [Read more...] about Build the wall? It could take at least 10 years, even with 10,000 workers
Are you sitting down? I’ll pause typing for a moment so you can find a chair.Good. On Monday, Dec. 10, for the first time in 12 years, the yield (or interest rate) on the five-year U.S. Treasury bond fell below the yield on the three-year U.S. Treasury bond. Alarm bells rang on Wall Street. The rest of us said, “What?”When the yield on a long-term bond drops below the yield on a short-term bond, it’s called a “yield curve inversion.” Over the last 50 years, the yield curve has inverted six months to a year-and-a-half before the start of each recession. It’s predicted all seven recessions since 1970. Hope you are still sitting.The U.S. Treasury sells Treasury securities when it needs to borrow money to cover the federal budget deficit. A security is a promise to pay interest and repay the principle after a period of time, from 30 days to 30 years. Short-term securities are called bills; long-term securities are called bonds.Lenders can sell … [Read more...] about Why the alarm about yield curve inversions?
Sections SEARCH Skip to content Skip to site index Subscribe Log In Subscribe Log In Today’s Paper Advertisement DealBook Supported by DealBook ByAndrew Ross Sorkin Sept. 10, 2018 This week is the 10th anniversary of the inflection point of the financial crisis: the collapse of Lehman Brothers, the biggest bankruptcy in history. To some, it feels like a long time ago. Yet, its effects still echo in the way we live today — in the attitudes that pervade our economy, our culture and our politics. It is hardly a stretch to suggest that President Trump’s election was a direct result of the financial crisis. The crisis was a moment that cleaved our country. It broke a social contract between the plutocrats and everyone else. But it also broke a sense of trust, not just in financial institutions and the government that oversaw them, but in the very idea of experts and expertise. The past 10 years have seen an … [Read more...] about From Trump to Trade, the Financial Crisis Still Resonates 10 Years Later