Deepest Bond Yield Inversion Since Volcker Suggests Hard Landing

The bond market is doubling down on the prospect of a US recession after Federal Reserve Chair Jerome Powell warned of a return to bigger interest-rate hikes to cool inflation and the economy. US stocks extended the decline they’ve suffered over the past month, with the S&P 500 Index notching a 1.5%

March 9, 2023 . 10:37 PM

1 min read

Fed Chair Jerome Powell warned of bigger interest-rate hikes to cool inflation and the economy.
The yield on two-year Treasury notes touched 5.08%, its highest level since 2007.
The spread between 2- and 10-year yields is larger than a percentage point for the first time since 1981.
Fed hikes over the next four meetings are priced in.
Fed Chair Powell is open to reverting to half-point rate hikes.
US stocks extended the decline they’ve suffered over the past month.
The dollar surged higher Tuesday, with a Bloomberg gauge rising to its highest level since early January.