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July 5, 2022, 10:23 a.m. EDT

Spread between 2- and 10-year Treasury yields briefly falls below zero for first time since June 14

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By Vivien Lou Chen

A widely followed indicator of the economic outlook briefly flashed a recession warning on Tuesday as fears of a downturn continued to grip markets. The spread between 2- /zigman2/quotes/211347045/realtime BX:TMUBMUSD02Y +2.76% and 10-year yields /zigman2/quotes/211347051/realtime BX:TMUBMUSD10Y +2.70% briefly fell below zero Tuesday morning for the first time since June 14, driven by a bigger decline in the 10-year rate than in the 2-year yield. Investors piled into the safety of government bonds amid a selloff in stocks that sent Dow industrials down by more than 600 points. An inversion of the 2s10s spread is considered to be a reliable indicator of a recession, albeit with a lag.

add Add to watchlist BX:TMUBMUSD02Y
BX : Tullett Prebon
+0.09 +2.76%
Volume: 0.00
Aug. 17, 2022 6:54a
add Add to watchlist BX:TMUBMUSD10Y
BX : Tullett Prebon
+0.08 +2.70%
Volume: 0.00
Aug. 17, 2022 6:59a

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