US Yield Curve Set to Invert by Most in 40 Years, Allspring Says
- Inversion of two-, 10-year yields may reach most since 1980s
- What Fed may say next week is ‘really worrying:’ Jacobsen
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A crucial part of the US Treasury yield curve risks inverting even more to a level last seen in the early 1980s as the economy inches closer to a recession, according to Allspring Global Investments.
Two-year yields are likely to surge in the next six months, increasing the inversion with 10-year yields to at least 100 basis points, said Brian Jacobsen, senior investment strategist at the firm. The yield gap at that part of the curve stood at minus 44 basis points on Friday, the deepest in a month, data compiled by Bloomberg show.