Strength in the bond market is signaling that the US economy won't enter a recession either this year or next

• The bond market is signaling that the economy is not going to enter a recession anytime soon, according to DataTrek.
• That's because corporate bond yield spreads relative to Treasuries are continuing to decline.
• "The corporate bond market is not discounting any real possibility of a deep 2023-2024 earnings recession," DataTrek said.

Underlying strength in the bond market is signaling that the US economy is not on the verge of entering a recession anytime soon, according to a Monday note from DataTrek Research.

In fact, corporate bond-yield spreads relative to US Treasuries suggest the economy is not going to enter a recession in 2023 or 2024, according to the note.