A trader signals an offer in the Standard & Poor’s 500 stock index futures pit at the CME Group in Chicago on Dec. 14, 2010.
Scott Olson | Getty Images News | Getty Images
The relationship between the 10- and 2-year Treasury yield briefly normalized Wednesday, reversing a classic recession indicator.
Following economic news that showed a sharp decline in job openings and dovish remarks from Atlanta Fed President Raphael Bostic, the benchmark 10-year yield inched above the 2-year for the first time since June 2022.
The respective yields were both around 3.79% on the session, with just a few thousandths of a percentage point separating them.
10-year yield vs. the 2-year
An inverted yield curve, in which the nearer-duration yield is higher, has signaled most recessions since World War II. The reason why shorter-duration yields rose above their longer-duration counterparts is essentially the result of traders…
