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Ominous warning from the US bond market

Jan 03, 2019 - Australian Financial Review

Jerome Powell, who runs the powerful US central bank, will be deeply troubled by the behaviour of the US bond market over the past two months.

After reaching a peak of 3.237 per cent in early November, the yield on benchmark US 10-year bonds tumbled to finish the year at 2.684 per cent. (Yields fall as bond prices rise). This meant that the US 10-year bond yield - which influences what consumers and businesses worldwide pay to borrow - finished 2018 only fractionally higher than where it w...