Morgan Stanley Says U.S. Yield Curve Now Clearly Spells Downturn
- Bank’s adjusted metric has been inverted since December 2018
- Soft economic data in U.S. point to rising stock volatility
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Make no mistake, the Treasury yield curve really is flashing recession angst -- and the trade war is merely a sideshow.
While a key slice of the curve has inverted this month for the first time since March, an “adjusted” curve that accounts for quantitative easing and tightening has been persistently inverted for the past six months, according to Morgan Stanley.