Global bond yields continue to fall as as recession fears haunt markets

Reuters

• Global bond yields continue to fall raising real concerns about the rising risk of recession. 
• Stock markets held up despite the negative sentiment with traders boosted by ongoing trade war negotiations between the US and China.
• US, Japanese, and Australian yields plunged prompting fears that central banks could look to ease monetary policy.

Global recession fears are unabated as credit markets signal led further dismay about slowing growth with yields on US Treasuries slipping once again.

Yields on 10-year US Treasuries fall to 2.34%, a 15 month low, according to Reuters. Treasuries are at 2.37% as of 8.55 a.m in London (4.55 a.m ET).

"The rapid and persistent decline in bond yields is unnerving investors about the economic outlook," said Jasper Lawler, head of research at London Capital Group. 

While the spectre of yield curve inversion, a key recessionary signal, remains prominent, developments in US-China trade war talks appeared to steady stock markets. China may make concessions on forced technology transfers in an attempt to get a deal over the line, according to Reuters. 

Yields in Australia and Japan are also at multi-year lows and has sparked concerns that recession could be just around the corner. 

Negotiators are in Beijing as part of ongoing discussions about trade with hopes of a deal to prevent $250 billion of US tariffs on China and boost cooperation between the two sides continuing to be a thorny issue. 

In China, stocks slipped once again with the Shanghai Composite falling 0.9%. Japan’s Nikkei closed down 1.4%.

In Europe, the FTSE 100 is up 0.7% after yet another tumultuous evening in parliament following a series of indicative votes on Brexit. Meanwhile the pound slipped against the dollar and is currently down 0.3% just outside the $1.30 range. 

France’s CAC and Germany’s DAX are up 0.3% respectively, while US futures are flat.

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See Also:

• Why everyone’s so hung up on the recession red flag called ‘the yield curve’
• Recession fears trigger sea of red in Asian stocks; US and Europe are are only slightly lower
• Yet another recession warning just flashed red — a Treasury ‘yield curve’ just inverted for the first time since 2007

SEE ALSO: GOLDMAN SACHS: Here’s why the latest yield-curve inversion pales in comparison to past signals — and why you shouldn’t give up on the economy just yet

Source: Business Insider – cburroughs@businessinsider.com (Callum Burroughs)