Bond Report: Treasury yield curve inverts for first time since 2007, underlining recession worries

A closely watched measure of the Treasury yield curve inverted Friday for the first time since 2007, highlighting fears that a global slowdown will take a toll on the U.S. economy.

The yield on the 10-year Treasury note TMUBMUSD10Y, -4.14% fell nearly 11 basis points to 2.428%, pushing it below the yield on the three-month T-bill at 2.453%. An inversion of that portion of the yield curve is seen as a reliable warning of a potential recession within a year or two. Inversions have preceded every U.S. recession going back to 1955 with only one false positive, researchers at the San Francisco Federal Reserve found.

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