One of the bond market’s most reliable gauges of impending U.S. recessions remained solidly in triple-digit negative territory on Friday, as investors assessed disappointing U.S. manufacturing-sector data and a spate of global rate hikes from the prior day. The spread on 2- and 10-year yields was below minus 100 basis points throughout the day, after having intermittently fallen in and out of that level on Thursday. It’s at one of its lowest levels since early March, a period dominated by fears about Silicon Valley Bank. Investors were in a risk-off mood on Friday, with all three major U.S. stock indexes lower in the New York morning and Treasurys rallying.
