Basis Points: Rates Strategist and Bond Rally

basis points: That expectation, nurtured in recent weeks by worsening U.S.-China trade relations and signs global growth is slowing, was bolstered Wednesday by weak Chinese and German economic data, according to The Japan Times. The so-called inversion drew U.S. President Donald Trump's ire, who tweeted Wednesday that Federal Reserve Chairman Jerome Powell is clueless. ; Bad European and Chinese data were the trigger for the global bond rally, said Praveen Korapaty, chief global rates strategist at Goldman Sachs Group Inc. The 10-year Treasury yield dipped as much as 1.9 basis points below the two-year yield in what's considered a harbinger of a U.S. economic recession beginning in the next 18 months. From the pace of the move, I suspect some long-held steepeners are being unwound as well. The global bid for bonds also inverted the two-year to 10-year U.K. yield curve Wednesday. Another widely watched recession indicator, the yield difference between three-month and 10-year Treasuries, inverted in March and has been negative much of the time since, bedeviling investors who anticipated that the yield curve would steepen as the Federal Reserve began to cut interest rates. (news.financializer.com). As reported in the news.