by y Timelapze
The 10-2 yield spread just narrowed below 7bps. We haven’t quite inverted yet but this is the narrowest it’s been in 12 years. Usually viewed as a recession indicator when taken in conjunction with a variety of other economic data points.
While inversion doesn’t always lead to a recession, an inversion has preceded the last few recessions.
As it stands the spread is nearly 6.5bps.