NPR

Stocks Indexes Drop As Bond Market Flashes Recession Warning

The bond market flashed an ominous warning Friday, as the yield on long-term government debt dipped below that of short-term bills. That unusual situation often signals a recession on the horizon.
Major U.S. stock indexes fell Friday as short-term Treasury yields exceeded those on long-term bonds, in what some analysts consider a sign that a recession may be coming. Source: Spencer Platt

The stock market tumbled Friday as investors digested an ominous warning sign: Interest rates on long-term government debt fell below the rate on short-term bills. That's often a signal that a recession is on the horizon.

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