One More Hike To Inversion – Treasury Curve Plunges To Flattest Since July 2007

One more rate hike and it would appears the entire curve out to 10Y maturity will be inverted

2s30s is testing down towards 40bps, but 2s5s dropped well below 20bps

And 2s10s is now below 30bps for the first time since July 2007

Remember 9 of the last 10 curve inversions have rapidly presaged a recession (and the last two curve inversions saw the stock market cut in half).

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