2-year/10-year U.S. Treasury yield curve inversion deepens, flashing 'red' [View all]
Source: Marketwatch
The yield gap between the U.S. 2-year and 1-year Treasury note inverted further on Tuesday as bond market participants grew increasingly worried about the economic outlook in the face of President Trump’s international trade policies.
What are Treasurys doing? The 10-year Treasury note yield slipped 6 basis points to 1.484%. The 2-year note rate was down 2.3 basis points to 1.528%, while the 30-year bond yield slumped 7.7 basis points to 1.963%.
The spread between the 2-year note and the 10-year note stood at negative 4 basis points, Tradeweb data show.
The yield curve’s slope is usually positive as investors demand more compensation to own long-term debt against inflationary pressures or monetary policy uncertainty. An inversion of the yield curve, or a negative yield spread, thus points to widening concerns about the health of the economy and is seen as a usually reliable indicator of a coming recession.
Read more: https://www.marketwatch.com/story/treasury-yields-retreat-ahead-of-key-debt-auction-2019-08-27
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