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The bond market yield curve has inverted for the first time since 2007. The rate on short-term three-month-long US government bonds is higher than the rate on longer-term 10 year US government bonds. An inversion is seen as a powerful signal of recession. According to the San Francisco Fed, pretty much every recession has been preceded by an inverted yield curve, although there is typically a bit of a lag. The BBC's Michelle Fleury and Chris Low of FTN Financial give their take on what's spooked the markets. |