Goldman says jitters about U.S. yield inversion 'overblown'

NEW YORK (Reuters) – Goldman Sachs analysts said on Thursday current concerns about a U.S. yield curve inversion among traders as an omen of a looming recession are “overblown,” though an inversion is often followed by a 3-5 percent drop in the S&P 500.

The Goldman Sachs company logo is seen in the company’s space on the floor of the New York Stock Exchange, (NYSE) in New York, U.S., April 17, 2018. REUTERS/Brendan McDermid

“While we would consider a significant inversion of the Treasury curve a bearish signal, we think such concerns are currently misplaced,” Goldman analysts Charles Himmelberg and Matthieu Droumaguet wrote in a research note.

Reporting by Richard Leong

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