US yield curve between 3-month and 10-year rates back in positive territory

LONDON: The U.S. Treasury bond yield between three-month and 10-year rates which has been inverted since around mid-May, nudged back into positive territory on Friday with long-dated bond yields moving back above their shorter-dated peers.

The 10-year U.S. Treasury yield was marginally higher at 2.05%, while the three-month bill rate was down almost 3 basis points at 2.04%.

The curve had been inverted since May. That means shorter-dated yields were higher than longer-dated ones in what is considered a warning of looming recession.

And while the U.S. Treasury curve remains close to its flattest in years, it has steepened of late as expectations grow  the U.S. Federal Reserve is gearing up to cut rates, in turn pushing down short-term yields.