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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
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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

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

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