US Economy At Crossroads: Mohamed El-Erian Flags Stagflation Risk, Cautions On Recession Threat For 2024
Portfolio Pulse from Piero Cingari
Economist Mohamed El-Erian warns of a potential stagflation risk and recession threat for the US economy by 2024 due to soaring interest rates, a strong dollar, and climbing oil prices. The yield on the benchmark US 10-year bond has surged, contributing to higher borrowing costs and an uneven pattern of deposit outflows from the banking system. The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen 16% year to date, and more than 50% since its 2020 highs.
October 05, 2023 | 2:41 pm
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The iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT) has fallen 16% year to date, and more than 50% since its 2020 highs, due to the surge in the yield on the benchmark US 10-year bond.
The surge in the yield on the benchmark US 10-year bond has led to higher borrowing costs and an uneven pattern of deposit outflows from the banking system. This has negatively impacted the performance of the iShares 20+ Year Treasury Bond ETF (NASDAQ:TLT), causing it to fall 16% year to date, and more than 50% since its 2020 highs.
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