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The Bond Market Wrecking Ball Shocks Markets | Round Up

Inflection Point

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Introduction

The long end of the yield curve has inverted, which is a 100% predictor of recession. Long bonds are now down 5% for the year after suffering one of their worst years in recent memory. The downgrade of US debt from Fitch to AA plus seems odd but it could turn into an ugly panic if left unchecked.

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