Recession indicator flashes red for first time since 2005 – AOL Finance

The market’s most closely watched part of the yield curve inverted today, and if its record over the last half-decade is any indicator, the U.S. could be headed for a recession soon.Shortly after 6 a.m. ET on Wednesday, the yield on the 10-year U.S. Treasury bond dipped below the yield on the 2-year U.S. Treasury as the 10-year fell 1 basis point below the 2-year. The yield curve inversion has a strong track record of predicting a recession; each of the last seven recessions (dating back to 1969) were preceded by the 10-year falling below the 2-year.

Source: Recession indicator flashes red for first time since 2005 – AOL Finance

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