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The spread between two- and 10-year Treasury yields fell below zero, something that has happened before each of the last seven recessions, according to Business Insider.

The spread between two- and 10-year Treasury bond yields is the most closely watched section of the yield curve and it is inverted once again. When short-term bonds are worth more than long-term bonds, it means people think their money is worth more in the short-term. This means long-term economic outlook is very low and the yield curve is inverted.

The yield on the 30-year note also fell to a new low as well. Parts of the yield curve have already been inverted for months, causing investors to become alarmed.

Charlie Ripley, a senior investment strategist at Allianz Investment Management, said, "We've been in a bit of a perfect storm for the rates market recently. This has definitely been a strong signal for recession, so people are watching this very closely."

The inverted yield curve was driven by 10-year Treasury bonds falling another 10 basis points to 1.60%, its lowest level since mid 2016.

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