The US Yield Curve has been rapidly steepening with the spread between the 10-year yield (4.98%) and 2-year yield (5.14%) now at -0.16%, up from -0.71% a month ago. That's the least inverted curve we've seen since July 2022.
This has been a "bear steepening," with long-term yields (10-yr) rising faster than short-term yields (2-yr). Prior to recessions, we tend to see a "bull steepening," with short-term yields (2-year) falling faster than long-term yields (10-year) as a result of expected Fed cuts.
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