U.S. 5-year and 30-year Treasury yields on Monday briefly inverted for the first time since 2006, raising fears of a possible recession.
Earlier on Monday, the yield on the 5-year Treasury note rose to 2.6361%, while the 30-year yield was down less than 1 basis point to 2.6004%. The inversion has since reversed, with the 5-year note last down 3 basis points 2.548%. The 30-year yield is down 4 basis points at 2.564%.
This is the first time the shorter-dated 5-year Treasury yield has risen above that of the longer-dated 30-year U.S. government bond since 2006 — just a couple of years before the Global Financial Crisis.
However, the main yield spread that traders watch — the spread between the 2-year and the 10-year rate — remained positive for now.