You are using an older browser version. Please use a supported version for the best MSN experience.

What an inverted yield curve is and why it might signal a looming recession

Reuters Logo By Dave Lucas of Reuters | Slide 1 of 6: The spread between yields on U.S. two-year and 10-year notes, a closely watched metric, is likely to invert for the first time since 2007. That would follow the inversion of another part of the yield curve earlier in the year. Here is what that means. Pictured: A trader looks at screens as he works on the floor at the New York Stock Exchange in New York, August 13, 2019. REUTERS/Eduardo Munoz

A RELIABLE RECESSION SIGNAL

Yields on U.S. 10-year Treasury notes slid below those on two-year notes on Wednesday, delivering a reliable recession signal and sending shudders through global financial markets. Other sections of the U.S. Treasury yield curve have been inverted for months as investors bet that U.S. and global growth would slow. Click ahead to see what it all means.

Pictured: A trader looks at screens as he works on the floor at the New York Stock Exchange in New York, Aug. 13, 2019. 

© REUTERS/Eduardo Munoz

More From Reuters

image beaconimage beaconimage beacon