US Yield Curve Turns Positive for First Time Since July 2022; 2Y at 3.69%, 10Y at 3.68%

Aug 5, 2024, 12:44 PM

The US yield curve has turned positive for the first time since July 2022, with the two-year yield falling below the ten-year yield. This shift follows a significant repricing of Federal Reserve rate cuts amid fears of an economic downturn. The two-year yield dropped by 70 basis points to 3.69% since last Wednesday, while the ten-year yield decreased by 40 basis points to 3.68% in the same period. The yield spread between the two maturities is now at 0.01%, marking the end of the inversion trend that had persisted for over a year. The spread had previously reached its lowest level since May 2023, with the disinversion trend bringing the 10Y2Y yield curve to -0.08%.