Treasury yield curve flattening continues

The yield curve, spread between the 10-year and 2-year yield, is flattest since 2007.
Curve inversion is widely considered a precursor to a recession.

Omkar Godbole FXStreet Contributor

The spread or the gap between the US 10-year treasury yield (10s) and the 2-year treasury yield (2s) has dropped to 19 basis points - the lowest level since 2007.

Meanwhile, the spread between the 10s and 7s currently stands at 4 basis points and risks inversion, that is, the 7-year note could soon yield more than the 10-year note.

Curve inversion is considered by many a sign of impending recession.

Author

Omkar Godbole

FXStreet Contributor

Omkar Godbole, editor and analyst, joined FXStreet after four years as a research analyst at several Indian brokerage companies.

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