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- The economy could be in for pain even if there's a soft-landing, according to market veteran Ed Yardeni.
- De-inversion of the yield curve is often cheered, but a risk today is the 10-year yield moving even higher, in line with short-term yields.
- The 10-year Treasury yield passed 4% in July, edging closer to the 2-year Treasury yield, which is nearly 5%.
The bond market is flashing a worrying signal that more pain may be in story for the economy, according to market veteran Ed Yardeni.
The Yardeni Research president pointed to signs of cooling inflation in the economy, which has caused more investors to dial back their expectations of a downturn.
But there's still risk in the system, Yardeni said, thanks to troubles unfolding in the bond market.