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