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Global Markets Drop As U.S. Bonds Send Classic Recession Warning

The spread between the 2-year Treasury yield and the 10-year yield flipped so that the 2-year was higher than the benchmark 10-year yield for the first time since June, 2007.

Despite this being Trump's self-proclaimed "best economy ever," the market indicates otherwise with an inversion that's a classic recession warning. Via CNBC:

The U.S. bond market just flashed what could be its biggest warning yet of a coming recession, and it is not alone.

The spread between the 2-year Treasury yield and the 10-year yield flipped so that the 2-year was higher than the benchmark 10-year yield for the first time since June, 2007. Other parts of the curve have already inverted, but traditionally the 2-year to 10-year spread is the most widely watched by market players.

The U.S. 30-year bond yield fell to a record low early Wednesday, touching 2.015% for the first time ever, falling through its prior record of 2.08%. Yields across Europe fell, and the German 10-year bund touched a new low of negative 0.65%.

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