| data that reflect current economic conditions and can suggest future developments or fluctuations in the nation's economy: issued, usually monthly, by the U.S. Bureau of Economic Analysis in the Commerce Department. |
Leading Indicator
A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate.
Investopedia Commentary
Bond yields are typically a good leading indicator of the market because traders anticipate and speculate trends in the economy.
Related Links
Economic Indicators to Know
Bond Spreads: A Leading Indicator For Forex
See also: Aspirin Count Theory, Coincident Indicator, Lagging Indicator, Leading Lipstick Indicator