Treasury yields invert, signaling possibility of recession

FILE - In this July 30, 2019 file photo, trader Gregory Rowe works on the floor of the New York Stock Exchange. An economic alarm bell is sounding in the U.S. and sending warnings of a potential recession. Yields on 2-year and 10-year Treasury notes inverted early Wednesday, Aug. 14, a market phenomenon that shows investors want more in return for short-term government bonds than they are for long-term bonds.

NEW YORK (AP) — An economic alarm bell is sounding in the U.S., sending warnings of a potential recession ahead.

Yields on 2-year and 10-year Treasury notes inverted early Wednesday, a market phenomenon that shows investors want more in return for short-term government bonds than they are for long-term bonds.

That implies a loss of faith in the soundness of the U.S. economy and it's been a solid indicator of a coming recession for decades, including the last one that preceded the global economic crisis in 2007.

When a recession might hit, if it does, is a little hazier. Months or even years have passed after an inversion takes place before economists can connect the two.

Major U.S. markets are falling sharply before the opening bell and prices for gold are rising.

Copyright 2019 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

More from this section

GRAND MARAIS, Minn. (AP) — Mark Pavelich, a forward on the 1980 U.S. "Miracle on Ice" Olympic hockey team who went on to play for the New York Rangers and two other NHL teams has been charged with assault for allegedly beating a neighbor with a metal pole and breaking several of the man's bones.

Automakers have introduced a flurry of new automotive safety and convenience technology features the past few years. Close-to-new vehicles with these features are now increasingly showing up on dealership lots as used vehicles. The upshot: You don't have to buy a new car to get modern conven…