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- When the yield curve — the difference between short- and long-term government bond yields — inverts, it has historically signaled a coming recession.
- The gap between 2-year and 10-year Treasury yields hasn’t been this slim since before the last recession.
- The yield curve hasn’t inverted yet, but very well could this cycle if it keeps dropping at the current rate.
Last week brought a little (at least short-term) good news if you’re worried about the yield curve inverting.
The 10-year US Treasury yield rose above 3% for the first time in four years. This will be the opposite of inversion, if it persists. It makes the curve steeper unless short-term rates rise even more.See the rest of the story at Business Insider
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