US Markets

U.S. 3-month/10-year yield curve most inverted since 2007

Credit: REUTERS/JOSE LUIS GONZALEZ

The margin on interest rates on U.S. three-month Treasury bills over the yields on benchmark 10-year Treasury notes grew to its widest level since early 2007 as trade worries stoked fresh demand for long-dated government bonds.

NEW YORK, Aug 27 (Reuters) - The margin on interest rates on U.S. three-month Treasury bills over the yields on benchmark 10-year Treasury notes grew to its widest level since early 2007 as trade worries stoked fresh demand for long-dated government bonds.

At 8:17 a.m. (1217 GMT), the inversion between three-month bill rates US3MT=RR and 10-year bond yields US10YT=RR deepened to about 48 basis points, compared with 44 basis points late on Monday. This was the biggest premium on three-month rates above 10-year yields since March 2007, according to Refinitiv data.

An inversion between these two debt maturities has preceded each U.S. recession in the past 50 years.

(Reporting by Richard Leong Editing by Chizu Nomiyama)

((richard.leong@thomsonreuters.com; +1 646 223 6313; Reuters Messaging: richard.leong.thomsonreuters.com@thomsonreuters.net; Twitter @RichardLeong2))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Latest Markets Videos

    Reuters

    Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at Reuters.com and via Reuters TV.

    Learn More