Treasury Yields Decline as Recession Fears Persist

The Treasury rally goes on, fueled by the prospect of economic recession, sending longer-term yields down while short-term ones rise on expectations of a hawkish Fed. The 10-year yield declines to 2.936% from 2.990% Monday, lower than the two-year at 3.037%. Falling Treasury yields is usually weakens the dollar, but recession fears are boosting the greenback, which could reach parity with the euro today, Spartan’s Peter Cardillo says. “The reason for the super dollar is that the global economy is head for recession,” despite the lower yields, he tells WSJ. “Therefore, the [US] is likely to withstand a hard landing better than rest of the world.”