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- Economists tend to see an inverted US bond-yield curve as an indicator that a recession is coming.
- Yields on Treasury bonds remain inverted, which could be a classic recession warning.
- But it's no longer worth worrying about the yield curve, according to Goldman Sachs.
The classic bond-market barometer of economic health - the yield curve - is still blaring a recession signal, but it may no longer be a reliable metric, according to Goldman Sachs.
The widely followed indicator is near its most inverted level - meaning it's deviating from what's considered normal - in over 40 years, and such anomalies are typically taken by economists as a sign that a severe economic downturn is on the way.