U.S. Treasury Yield Curve Nears Inversion, Economic Slowdowns Loom

The closely watched gap between two-year and 10-year U.S. Treasury yields is moving closer to inversion, a development historically associated with economic slowdowns.

This comes after the Federal Reserve raised interest rates this month for the first time in three years as policymakers seek to contain inflation amid elevated energy prices.

Investors are pricing in at least three additional quarter-point rate increases over the next year, with a fourth also possible, according to Bloomberg.