Investors Are Getting Worried About an Inverted Yield Curve
- Treasuries spread from 5 to 30 years hits narrowest since 2007
- Bullard says central bank should debate yield curve issue now
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To Citigroup Inc., the chances are slim that the U.S. enters a recession anytime soon. Officials at the Federal Reserve feel the same way.
Yet both camps agree that an inverted Treasuries yield curve would be an ominous sign for growth. And with the latest bout of flattening, the reality of sub-zero spreads may soon collide with an otherwise sanguine outlook on the economy.