Treasury Yield Curve Narrowing Signals Recession Fears Mounting

The narrowing spread between 2-year and 10-year Treasury yields signals a recession could be coming soon.

As the yield curve de-inverts, that's been a historical indicator of recession.

The 10-year Treasury yield has risen above 4.7%, nearing the 5% 2-year yield, taking the spread to just 34 basis points.

Real 10-year yields are at 2009 highs, making borrowing more expensive for businesses and consumers.

If unemployment ticks up, it would be a recession alert, so the weakening labor market is concerning.