Business & Finance
The Bond Market Is Getting Closer to Sounding Alarm on Economy
Key Points
Bonds The Bond Market Is Getting Closer to Sounding Alarm on Economy The bond market is on the brink of signaling that a series of Federal Reserve interest-rate hikes will start shifting the narrative toward the risk that the US economy stalls out. The extra yield investors demand to hold 10-year Treasuries over two-year notes shrank to as little as 17 basis points last week, the slimmest gap since early 2025.
Bonds
The Bond Market Is Getting Closer to Sounding Alarm on Economy
The bond market is on the brink of signaling that a series of Federal Reserve interest-rate hikes will start shifting the narrative toward the risk that the US economy stalls out.
The extra yield investors demand to hold 10-year Treasuries over two-year notes shrank to as little as 17 basis points last week, the slimmest gap since early 2025. This so-called flattening of the curve increases the possibility that the 10-year will soon yield less than shorter maturities, a closely watched phenomenon known as a curve inversion.