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US Yield Curve No Longer Inverted: Why This Time The Recession Scenario Might Be Different For Investors

Benzinga ·  Sep 9 09:21

The U.S. Treasury yield curve officially exited its prolonged inversion on Friday, Sept. 6. This marks the end of over two years when short-term yields were higher than those on long-term bonds — a rare and closely watched economic phenomenon.

As of Monday, the 10-year Treasury yield stood at 3.72%, with the two-year at 3.65%. That's a spread of 7 basis points (bps). The question now is what this shift means for the economy, markets, and Federal Reserve policy.

Why Yield Curve Inversions Matter

Under normal conditions, longer-term bonds tend to offer higher yields than shorter-term ones because...

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