US Bond Market Nears Recession Signal as Yield Gap Shrinks
· Business · Bloomberg, ABC News (AU)
The US bond market is approaching a potential recession signal as the yield gap between 10-year Treasuries and two-year notes narrowed to 17 basis points last week. This flattening of the yield curve suggests that investors are increasingly concerned about the US economy stalling due to Federal Reserve interest-rate hikes. A full inversion occurs if the 10-year yield falls below the two-year yield, a trend historically viewed as a precursor to economic downturns. The current gap is the smallest recorded since early 2025.
Why it matters
A yield curve inversion is a widely watched indicator that often precedes an economic recession, impacting investor confidence and global market stability.
Read the original report — Bloomberg
Join us on Telegram
Breaking news the moment it lands. At 10,000 members we ship the Android app.