“Fed funds futures were pointing to a quarter point in easing Monday, as traders said scary signals continued to emanate from the bond market.

“On Friday, there was a so-called inversion in the yield curve, meaning very short rates rose above longer 10-year note rates, a fairly reliable recession signal.

“Traders say the bond market may be overreacting, while stocks seem to be ignoring the recession warnings and fears the Fed will have to jump in with one or more rate cuts to stop the economy from rolling over.”

Patti Domm | @pattidomm
Published 2 Hours Ago Updated 1 Hour Ago