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Key return curve inverts further as 30-year hits record low

A central part of the US yield curve inverted even further on Wednesday morning, exacerbating the fear of an imminent recession.

U.S. Market Overview: Treasurys Chart

Around 3:20 am ET, the return on the 10-year Treasury benchmark index, which reverses its price, was lower by around 1.4593%, while the yield on the 30-year Treasury bond reached a record low to trade at 1.9072%.

Return on the benchmark 2-year Treasury portfolio, more sensitive to changes in Federal Reserve policy, fell to 1[ads1].5180% Wednesday morning, 6 basis points above the 10-year banknote rate.

The move comes less than 24 hours after the spread between the 10-year government yield and the 2-year yield fell to negative 5 basis points, its lowest level since 2007.

A 10-year yield below the 2-year yield is seen of bond traders as an important economic downturn, and marks an unusual phenomenon that bondholders receive better compensation in the short term.

The 3-month state tax rate also traded higher than the 30-year bond rate on Wednesday.

The US Treasury will auction $ 41 billion on 5-year notes and $ 18 billion on 1-year and 11-month floating rate notes (FRN).

There are no big financial data reports scheduled for Wednesday.

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