US treasury yield curve flattest in 11 years

Omkar Godbole FXStreet Contributor

The spread between the 10-year and 2-year treasury note has narrowed to tightest since the second third quarter of 2007.

As of writing, the yield gap between the two maturity stands at 20 basis points as the 10-year yield is trading at 2.82 percent and the 2-year yield is hovering at 2.62 percent.

The relentless narrowing of the yield spread has triggered fears the curve may invert soon, which is widely considered as a precursor to a recession.

An inverted yield curve occurs when the 10-year note yields less than the 2-year note.

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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