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Why the inverted yield curve is typically a recession predictor

Sep 12, 2024
But this time may be different. One theory is that weaker data allowed companies to prepare and soften the economic landing.
The yield curve in the U.S. Treasury market has been singing a scary tune for nearly two years. So where's the recession?
Torsten Asmus/Getty Images

Demand for Treasury bonds dips in times of uncertainty

Apr 16, 2024
Investors fear missing out on higher rates of return by locking up the money they put in for 10 years or more.
Thanks to uncertainty about the Fed's next move, bond traders may not be too excited about upcoming Treasury bonds.
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Why would China sell off its U.S. debt — if that's what it's doing

Nov 7, 2023
There's a hot debate about what it's doing with its holdings, and the answer could affect how much it costs Americans to borrow money.
"We care about whether foreign governments or entities are buying U.S. Treasurys because it impacts the cost of borrowing in this country," said Jesse Wheeler of Morning Consult.
Mark Schiefelbein/POOL/AFP via Getty Images

With demand down, there's a new buyer of Treasurys in town

Nov 1, 2023
The Federal Reserve and major U.S. banks are buying fewer bonds than they used to. Hedge funds are picking up some of the slack.
The Treasury Department just released its quarterly refunding statement. Next week, it will auction off billions in bonds.
Mandel Ngan/AFP via Getty Images

How the debt ceiling fight puts the indispensable U.S. Treasurys market at risk

May 26, 2023
The $24 trillion Treasury bond market plays an important role in the global financial system. Is there any viable alternative?
"U.S. Treasurys are the safest asset anywhere, even in the case of default," says Yesha Yadav from Vanderbilt. This is why essentially the entire global financial system buys U.S. government debt whenever there's a panic.
Mandel Ngan/AFP via Getty Images

What happens to benefit checks if there's no deal on the debt ceiling?

May 23, 2023
Supplemental Security Income payments and veterans 'payments could be among the first checks to be delayed.
Speaker of the House Kevin McCarthy is scheduled to meet with President Joe Biden to continue debit limit negotiations. Experts agree that a default would cause a massive pause on regular government payments to individuals in need.
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Is Washington finally getting serious about the debt ceiling?

Every day there's a warning about how catastrophic a default on the national debt would be. What's it going to take to avoid that?
House Speaker Kevin McCarthy
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For public good, not for profit.

How would a U.S. debt default play out in Texas?

May 18, 2023
Half a million jobs could be lost in the second-biggest state economy. Pensioners, the food insecure and many others could suffer.
Treasury chief Janet Yellen has warned that the federal government could run out of money by June 1. Moody’s estimates that in a default, the giant Texas economy could lose more than half a million jobs.
Alex Wong/Getty Images

Breaking down the $31.4 trillion national debt

Jan 27, 2023
There are public holders and government agencies, which all comes into play in the congressional debt ceiling battle.
The national debt is made up of two big pieces — intragovernmental holdings and IOUs held by the public. Above, the U.S. Capitol dome seen through a glass ceiling.
Drew Angerer/Getty Images

What the new U.S. Treasurer could mean for Indian Country

Sep 14, 2022
In addition to overseeing the U.S. Mint and Fort Knox, Treasurer Lynn Malerba will run the Treasury's new Office of Tribal and Native Affairs.
Secretary of the Treasury Janet Yellen speaks as U.S. Treasurer and Mohegan Tribe Chief Lynn Malerba listens during a ceremonial swearing-in for Malerba at the Cash Room of the Treasury Department September 12, 2022 in Washington, DC.
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