U.S. Treasury yield curve flattest in 11 years
A slide in long-dated Treasury yields Wednesday helped to flatten the yield curve, narrowing the spread between the 2-year note and the 10-year note to its tightest since August 2007. The 10-year Treasury note yield fell 4.7 basis points to 2.826%, while the 2-year note yield was down 2.4 basis points to 2.596%, according to Tradeweb data. That helped to narrow the yield gap between the two maturities to 22.80 basis points, or 0.228 percentage point. A narrowing spread between yields for short-dated bonds and their long-dated peers tends to signal investors' fears over weaker growth expectations or higher interest rates. Economists worry that a negative spread, or an inverted curve, could serve as a precursor to a recession.
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