Deepening Global Inversions: Canada Joins the Club

-edited

Yield curve in inversions in Canada widened in response to Trump's impositions of Tariffs on Mexico.

A global recession now seems baked in the cake.

The definition is a bit obscure, however.

Some define a global recession as global growth less than 3.0%. Some say less than 2.5%. And some say it's growth under 2.0%.

I suspect it is irrelevant which definition one uses.

Economic Madness

Global recession talk picked up as Trump Imposes Tariffs on Mexico Over Immigration.

Mexico is the US' third largest trading partner.

These tariffs are madness.

Mike "Mish" Shedlock

Comments (6)
No. 1-5
KidHorn
KidHorn

Seems like people are willing to pay a lot to get a positive interest rate over a long duration. I assume many expect central banks to cut rates and for increasing amounts of negative yielding debt.

bradw2k
bradw2k

Mish, what is the immediate cause of inversions: (1) short-term risk aversion, as in investors thinking everything else is looking like a losing proposition for the next several months or few years; (2) expectations that central banks will soon be bidding up the short end; (3) both; something else ?? Thanks.

Bam_Man
Bam_Man

WTI is sh*tting the bed today - down almost 6%. Nothing to see here. Move along now.

mark0f0
mark0f0

Poloz was completely and utterly out to lunch when he claimed the Canadian economy would pick up strength. Not with the housing collapse in progress, and now the freak-out in WTI. The gold sector might start to perform well, but a miniscule number of Canadians are actually sector participants. Canadians are absolutely pickled in consumer debt (even worse than the US at its peak) which pretty much guarantees the necessity of cutting well beneath zero rates-wise.

ReadyKilowatt
ReadyKilowatt

The real way to deal with foreign companies "dumping" product into the market: