Investors reportedly are split on the meaning of a key bond market barometer for economy and the question of whether trillions of Fed dollars could have possibly warped a market warning sign. While analysts have long considered the gap, known as the yield curve, a key barometer for the health of the economy, many are split about what the signal means now, The Wall Street Journal explained. If the central bank continues to raise interest rates, “the yield curve is going to get flat, stocks are going to sell off and the economy’s going to get hit,” he told the Journal. To Morgan Stanley’s Matthew Hornbach, the flattening Treasury yield curve has a lot in common with the surging price of bitcoin, Bloomberg reported. For both trades, the best option is to simply buy the dips, Hornbach, global head of interest-rate strategy, wrote in a Nov. 18 note.

Source: Wall Street Journal November 25, 2017 14:48 UTC