2/10 Spread Near 10-Year Low

I like to keep an eye on the spread between the two- and ten-year Treasury bonds. It’s hardly perfect, but it has a decent track record of going negative before recessions.

Today, the 2/10 spread closed at 0.76%. That’s tied for the narrowest spread in nearly ten years. We’re not in the danger zone yet, but we are getting closer. I think this means the Fed can only hike rates a few more times.

Posted by on October 16th, 2017 at 9:43 pm

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