Investors in the Treasury bond market are betting that the Federal Reserve’s interest rate hikes will drive the US economy into recession. (File image)
Kate Duguid in New York Investors in the Treasury bond market are betting that the Federal Reserve’s interest rate hikes will drive the US economy into recession, even as stocks rally and analysts suggest the odds of such an outcome are shrinking. Short-term US government borrowing costs exceeded their long-term equivalents by the widest margin in three months on Wednesday, and the gap is fast approaching the 42-year record hit during the regional banking crisis in March. This situation, known as an...