Is a recession in the U.S. around the bend? Few economists are predicting one.
On the other hand, longer-term Treasury bond yields continue to slide below shorter-term maturities. Bond investors are gobbling up long-term government debt because they believe that the economy will slow dramatically.
Normally, the longer an investor allows the U.S. government to keep capital, the more that an investor would expect in annual interest from Uncle Sam. That is what transpires in a healthy economy.
This past Friday, however, the yield on the 10-year Treasury bond fell below the 3-month bond. The