Stock market sinks after bonds flash recession warning
U.S. stocks opened sharply lower on Wednesday after the bond markets sent a warning about a possible recession.
Earlier that day, prices on U.S. government bonds soared as safety-seeking investors bought up these products. As higher bond prices pushed yields lower, the yield on the benchmark 10-year Treasury note hit 1.622%, falling below the yield of a 2-year, which was 1.634%.
The last so-called inversion of this part of the yield curve came in December 2005, two years before a recession brought on by the financial crisis hit.
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