Critical yield curve inverts to its worst since 2007 sparking fresh concerns of a recession
- 2 months ago
U.S. Treasury rates continued to slide following yesterday’s session on Wall Street, a key yield curve inversion was irritated and hence plunged 10-year yield versus the 2-year rate to its lowest rate since 2007.
The yield on the benchmark 2-year Treasury note, which is vulnerable to the Fed’s policies, fell by 5 basis points to 1.526%, higher than the 10-year note’s rate of 1.476%.
And it is cause for concern as the last time a similar inversion occurred it was 2 years prior to the financial crisis and subsequently a global recession.
The spread between the 3-month Treasury yield and that of the 10-year note tumbled to -52 basis points, while the 30-year bond yielded 1.955% and heading to close below the 3-month bill yield for the first time since 2007.
Source: Smart Trend Team