The Flattening Yield Curve Just Produced Its First Inversions
- Parts of the front-end of Treasuries curve flip to negative
- More closely watched 2-, 10-year gap also smallest since 2007
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A section of the U.S. Treasuries yield curve just inverted for the first time in more than a decade.
The spread between 3- and 5-year yields fell to negative 1.4 basis points Monday, dropping below zero for the first time since 2007, and the 2- to 5-year gap soon followed. The 2- to 10-year is more closely watched as a potential indicator of pending recessions. But Monday’s move could be the first signal that the market is putting the Federal Reserve on notice that the end of its tightening cycle is approaching.