Global credit markets showing signs of danger

ArticleDebt crisis March 29, 2018 - 9:46:33 AM

Comparing the 10-year yield to the two-year Treasury yield shows a yield curve that has flattened to 51 basis points on Tuesday, a tick above the lowest level of the year.

Is there something rotten in the state of Denmark, or anywhere else in the world for that matter?

While the stock market is clearly showing lingering signs of concern about tariffs and trade wars, looming hot wars and potential privacy wars, the global interest rate markets are also beginning to show worrisome signs of strain.

Often, when we have seen dislocations in the global credit markets, it has been indicative of a looming, but unexplained, economic or market issue.

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