Key part of the yield curve nears inversion
The gap between 2-year yields and 10-year yields edged below 3 basis points in the past few minutes. The spread fell 2.5 basis points and came after front-end yields rose after the CPI report.
I have always thought of 2s10s as the definitive call on the yield curve, although 3m to 10-years is more in-fashion now.
An inversion of 2s10s hit about a year before the financial crisis.
