Amid a shaky marketplace, investors are eyeing the yield curve for signs of economic stability. History shows that when the yield curve inverts, a recession may soon follow. The yield on Europe’s most watched bonds turned negative Friday for the first time since 2016 after weak numbers from Germany’s manufacturers exacerbated worries about the health of the region’s economy. The yield on 10-year German government bonds, known as bunds, fell to negative-0.01% in morning trading. Investor demand for safe government bonds pushes up their prices and drives down yields.

Source: Wall Street Journal March 22, 2019 13:24 UTC