10-2 Yield Spread narrows to levels not seen in 12 years (mid-2007).

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.

https://www.cnbc.com/quotes/?symbol=10Y2YS