Now German Yield Curve Is Flattening to a Post-Crisis Low
- Yield gap between 10-year and 3-month notes halves this year
- But with 90-day rate well below zero, inversion looks unlikely
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A key part of the German yield curve has flattened at the fastest quarterly pace since 2014.
In the week after the same pocket of the yield curve for Treasuries inverted -- fueling speculation a recession is on the horizon -- the extra yield on 10-year bunds over three-month bills slipped to within two basis points of the post-crisis low. It has tumbled from 100 basis points at the start of the year to 45 basis points at 5 p.m. London time on Friday.