Treasury Yield Curve Inversion Sets New Record - Recession Warning Persists But Held At Bay For Now

• Yield curve inversion between 2-year and 10-year Treasuries has lasted over 624 days, a new record • Inversions typically signal an upcoming recession, with higher short-term rates and lower long-term yields • So far recession hasn't hit due to high consumer savings and Fed containment of banking turmoil • However, sustained inversions are usually a headwind for economies over time • They lift borrowing costs on loans and discourage long-term lending and risk taking