The yield on the 10-year Treasury note fell as far as 110.9 basis points below the 2-year Treasury yield, with the spread on its way to a fresh cycle low. The deepening inversion came as the policy-sensitive 2-year yield rose to 4.92%, while the 10-year yield was little changed at 3.81% during shortened trading ahead of the Fourth of July holiday. Last week, revised data showed the U.S. economy grew by more than initially estimated in the first quarter, while the Federal Reserve’s favorite inflation gauge contained stubborn core readings.
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