Goldman Sachs Raises US Recession Odds: Treasury Yields Tumble, Yen Rallies As Traders Bet On Heavy Fed Rate Cuts
Portfolio Pulse from Piero Cingari
Goldman Sachs has raised the odds of a U.S. recession, leading to a significant drop in global financial markets. U.S. Treasury yields have tumbled, and the Japanese yen has rallied as traders bet on heavy Federal Reserve rate cuts. The iShares 20+ Year Treasury Bond ETF (TLT) has seen gains amid the market turmoil.
August 05, 2024 | 1:32 pm
News sentiment analysis
Sort by:
Descending
POSITIVE IMPACT
The iShares 20+ Year Treasury Bond ETF (TLT) has rallied by 3.1% on Friday and is up by 1.3% in premarket trading Monday, reflecting increased demand for safe-haven assets amid rising U.S. recession fears.
The increased demand for safe-haven assets due to heightened recession fears has led to a rally in TLT. The ETF's performance is directly tied to the falling Treasury yields, which are a result of market expectations for significant Fed rate cuts.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80