DoubleLine Capital LP Chief Investment Officer Jeffrey Gundlach said Monday that current financial trends suggest an “imminent recession.”
“[U.S. Treasuries] yield curve now aggressively steepening after sustained inversion is highly suggestive of imminent recession,” Gundlach wrote in a statement on Twitter. Two-year treasury yields slumped up to 24 basis points Monday amid suggestions the Federal Reserve was planning to scale back interest rates, Bloomberg reported shortly after Gundlach sent the Tweet.
UST yield curve now aggressively steepening after sustained inversion is highly suggestive of imminent recession.
— Jeffrey Gundlach (@TruthGundlach) March 13, 2023
The slump caused the yield curve to shoot up 16 basis points, the highest since March 2020, according to Bloomberg. Experts at the Goldman Sachs Group were some of the first to suggest the Fed is not going to increase interest rates, reportedly mainly out of concern for regional banks in the U.S. This was followed by the steepest three-day decline in two-year yields since 1987.
Gundlach joins the likes of Michael Burry, Stanley Druckenmiller and Nouriel “Dr. Doom” Roubini in his forecasts, only the others vocalized their concerns of the impending recession in 2022. (RELATED: Majority Of Americans Know The Economy Is Tanking, Despite Biden’s Propaganda)
Regulators on Friday shut down Silicon Valley Bank after its stock plummeted and subsequently closed Signature Bank on Sunday. In January, Goldman Sachs reportedly sent a note to clients claiming there could be a 2008-sized home value crash in San Jose, Phoenix, San Diego and Austin. Prices could plummet more than 25% while recent buyers are locked into an extremely high interest rate, the banking giant predicted.