How worried should the Indian market be on US Treasury yield inversion?

Historically, an inverted yield curve - where long-term rates fall below short-term - has signalled an upcoming recession, as per experts.

Stock markets across the globe took a heavy beating on Monday as fears of US recession loomed large among investors after the US 10-year treasury yields fell to the lowest since early 2018 on Friday. The domestic equity market, too, fell prey to the global-sell off, that saw benchmark indices Sensex and Nifty plunging nearly a per cent. 

Besides, contraction in German manufacturing activity and a slump in the French manufacturing and service sectors added to investors’ nerves.

WHAT HAPPENED ON FRIDAY (March 22)

On March 22, the US 10-year treasury yields slipped 10 basis points (bps) to 2.44