According to Axios, Treasury yields are the lowest since the recession. From the article:
Why it matters: “The yield curve has been a reliable predictor of recessions, and the best summary measure is the spread between the ten-year and three-month yields.”
- “The spread between 3-month LIBOR and the 10-year note already has inverted.”
- Wednesday was “the first time the ‘invert that hurts,’ the 3-month/10-year spread, has been flatter than the 2-year/10-year spread since January.
- “The already tight spread compressed to 5 basis points after the Fed’s conference. Fed funds futures prices show investors see a greater than 35% chance the Fed cuts rates this year and a 0% chance it raises them.”