Treasury yield curve flattening continues
|- The yield curve, spread between the 10-year and 2-year yield, is flattest since 2007.
- Curve inversion is widely considered a precursor to a recession.
The spread or the gap between the US 10-year treasury yield (10s) and the 2-year treasury yield (2s) has dropped to 19 basis points - the lowest level since 2007.
Meanwhile, the spread between the 10s and 7s currently stands at 4 basis points and risks inversion, that is, the 7-year note could soon yield more than the 10-year note.
Curve inversion is considered by many a sign of impending recession.
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