Yield inversion is coming to Asian markets as growth woes spread

As risks to the outlook increase, investors are scooping up longer-dated securities on expectations that interest rates will continue to fall

The inverted yield curve looks set to be a global phenomenon, with major Asian debt markets primed to mirror the moves in Treasuries as fears grow that the world economy is teetering on the brink of a recession.

Yields in Singapore, Australia and Japan are tracking the slide in their US and UK peers as investors take stock of the damage wrought by the Sino-American trade war. A poor German GDP print and disappointing China factory output data on Wednesday underscored the weakness that’s engulfing the global economy.

As risks to the outlook increase, investors are scooping up longer-dated securities on expectations