2/10 yield curve inverts for the longest period on record, signaling potential recession.

The US Treasury key yield curve has inverted for the longest period on record, with the 2/10 curve remaining inverted since early July 2022, exceeding the previous record of a 624-day inversion in 1978. A 2/10 curve inversion, where short-term bonds yield more than longer maturities, is a traditional signal of an upcoming recession. This inversion can increase borrowing costs for consumers and businesses and discourage risk-taking, potentially leading to negative economic impacts.