US Yield Curve Inverts for First Time Since 2007
Posted: August 14th, 2019, 11:27 am
The U.S. Treasury yield curve slipped into inversion for the first time in more than twelve years Wednesday, as investors extended a global rally in fixed income assets amid slowing economic growth and tepid inflation readings in the world's largest economies.
Benchmark 10-year Treasury note yields fell to 1.628% Wednesday, edging past yields on 2-year notes , which held at 1.634%, for the first time since June of 2007. Benchmark 30-year bond yields were also active, falling to an all-time low of 2.0813%. The moves followed the weakest industrial output data from China since 2002 and data from Germany showing that Europe's largest economy contracted by -0.1% over the three months ending in June.
In Germany,Bund yields, which are a proxy for risk-free interest rates in the Eurozone and a key metric for global investor sentiment, have traded with a negative yield for several weeks, with 10-year paper at an all-time low of -0.638% and 30-year bonds trading at -0.166%.
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