Treasury Yield Curve Signals Turning Point as 10-Year Yield Surpasses 2-Year Yield

Thursday, 5 September 2024, 06:07

Treasury yield curve's 'moment of truth' approaches as the 10-year yield overtakes the 2-year yield, returning to positive territory. Inversions have historically signaled recessions, raising the stakes for economic forecasts. Observers debate the predictive ability of the curve in this cycle.
Marketwatch
Treasury Yield Curve Signals Turning Point as 10-Year Yield Surpasses 2-Year Yield

The Treasury yield curve's 'moment of truth' is upon us, as the 10-year Treasury yield recently eclipsed its 2-year counterpart on Thursday morning, marking a return to positive territory on an intraday basis. Inversions of the yield curve have served as reliable harbingers of prior recessions, however, it is once the curve flips positive again that the countdown to a slowdown begins in earnest. The uncertainty surrounding whether the yield curve has lost its predictive prowess in the current cycle remains a major talking point.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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