The yield curve of US bonds indicates investors' fears about a recession

WASHINGTON (Xinhua) -- The US government bond market is sending out fresh signals that investors are "increasingly convinced" of a recession due to the Federal Reserve's hawkish anti-inflationary moves, Reuters news agency reported.

The agency reported that the shape of the yield curve was seen as an indicator of the future state of the economy, as curve inversions were a "reliable sign of an impending recession."

"The curves are flattening and some are negative. They all end up telling you the same thing," the agency quoted Eric Theoret, global macro strategist at Manulife Investment Management, as saying.

The report said a flat curve could indicate expectations of a near-term interest rate hike and a weaker economic outlook.

On Wednesday, the Federal Reserve imposed another 75 basis point rate hike, the largest consecutive rate hike in decades, in an effort to rein in rampant inflation. It has already raised interest rates by 225 basis points since March.