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Risk appetite improves as bond markets look to stabilise
With bond markets settling down, a degree of calm has begun to form. The flight into safety that arose from fear of the implications of a key part of the US Treasury yield curve inverting (the 3 month to 10 year spread went negative for the first time since 2007) has just dissipated slightly. However, there will still be keen emphasis on economic data releases out of the US, with the focus today on US Consumer Confidence. According to Chicago Fed President Charles Evans there is just a 25% probability of a US recession, but a deterioration in consumer confidence (the consumer is around 70% of the US economy) could ... (full story)