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US Bond Market Flashes Recession Warning as Yield Curve Inverts

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Fed’s Inflation Fight Getting Tougher

A closely-watched part of the US yield curve inverted Monday as investors dumped short-term debt on concerns that aggressive rate hikes will lead to an economic slowdown.

The US two-year yield exceeded the 10-year for the first time since early April. Short-term yields that are higher than long-term yields are abnormal, and are historically seen as heralding a potential recession.