US Curve Inversion Deepens to One Percentage Point After Powell
- Inversion now widest since before March banking-sector fears
- Powell signals Fed pause may be followed by more tightening
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Bond investors’ concern over a potential US recession deepened after Federal Reserve Chair Jerome Powell signaled policymakers may keep pushing interest rates higher.
Yields on two-year Treasuries exceeded those on 10-year notes by as much as one percentage point on Wednesday after short-term rates climbed following Powell’s testimony in Congress. The two-10 segment of the yield curve — which has inverted before each of the past five US recessions — is now the most inverted since March.