Yesterday the phenomenon of the inversion of the yield curve of the Treasuries reappeared in the United States, with the two-year yields exceeding the ten-year rates. The phenomenon continues to be the subject of debate, as it is considered a factor that heralds the arrival of a recession in the United States.
Yesterday, 10-year Treasury rates reported the strongest jump since March 2020 to 3.3561%, while two-year rates soared to 3.3847%, thereby causing the yield curve to invert.
However, the reversal, the first since April, did not last long: the flare-up of rates led the 10-year-olds to then fly up to 3.39%, the record since March 2020, and a value higher than that of the two-year rates, at 3.346%.
Markets fear that Jerome Powell’s Fed may announce a rate hike of 75 basis points tomorrow, following the inflation data – consumer price index – which showed that the flare-up in prices did not peak in the United States.