Business Standard

Inverted US yield curve no more a worry for markets; here's why

The current yield inversion has more to do with the temporary demand-supply mismatch in the bond market and doesn't necessarily signal a recession in the US

bonds market, currencies, currency, RBI, yield
Web Exclusive Premium

Nikita Vashisht New Delhi
Global equity markets are showing resilience to the yield curve inversion in the US -- a phenomenon where the yields on longer tenure bonds fall below those of shorter tenure bonds. Over the past one week, the Dow Jones and S&P 500 have rallied 2 per cent and over 3 per cent, respectively, while domestic S&P BSE Sensex and the Nifty50 have added 1 per cent each.

This is despite the yield on the two-year treasury bond climbing higher than that of the 10-year bond, bringing the spread down to negative briefly on Wednesday. Earlier, on Monday, the five-year bond

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Mar 30 2022 | 2:00 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com