The stock market is happy; the bond market is showing worry
By STAN CHOE
AP Business Writer
NEW YORK (AP) — Something strange is happening in the bond market, which is usually seen by many investors as the most steady and sober corner of Wall Street. The gap between yields of longer-term and shorter-term Treasurys is shrinking. It sounds wonky, but such action has historically been a warning of possibly tougher times ahead. When such movements get extreme enough, they’ve been a predictor of recessions. The bond market isn’t close to that extreme level, and market watchers are split on whether the movements are merely technical. But they’re sharp enough to be worth watching.
