Market Pulse
Spread between 2- and 10-year Treasury yields briefly falls below zero for first time since June 14
7/5/22 10:22 AM ET (MarketWatch)Print
A widely followed indicator of the economic outlook briefly flashed a recession warning on Tuesday as fears of a downturn continued to grip markets. The spread between 2- and 10-year yields briefly fell below zero Tuesday morning for the first time since June 14, driven by a bigger decline in the 10-year rate than in the 2-year yield. Investors piled into the safety of government bonds amid a selloff in stocks that sent Dow industrials down by more than 600 points. An inversion of the 2s10s spread is considered to be a reliable indicator of a recession, albeit with a lag.
-Vivien Lou Chen
(END) Dow Jones Newswires
July 05, 2022 10:22 ET (14:22 GMT)
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