Forex Philosopher
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First U.S., now Canada's yield curve inverts for first time in 12 years
Canada has joined the U.S. in the inverted yield curve club, signalling a growing risk of recession that may keep Stephen Poloz on hold for his final 14 months as head of Canada’s central bank. The yield on Canada’s 10-year bond dipped to 1.6 per cent Friday, or six basis points lower than the rate on the three-month Treasury bill. That hasn’t happened since 2007, at the start of the financial crisis sparked by a housing crash in the U.S. The so-called inverted yield curves in both the U.S. and Canada reflect concerns that a global economic slowdown will keep the Federal Reserve and the Bank of Canada from ... (full story)