2023-06-26 09:54:49 ET
The yield curve inversion continued to deepen on Monday, with the gap between the U.S. 2-Year Treasury yield ( US2Y ) and the U.S. 10-Year Treasury yield ( US10Y ) pushing beyond 100 basis points. This marked the greatest disparity between the two instruments since late 1981.
Early in Monday's trading, the US2Y fell 4 basis points to 4.70%, while the US10Y dipped 6 basis points to 3.68%. The latest shakeup in yields has sent the 2s10s yield curve to a gap of 102 basis points.
Sustained Treasury yield inversion is traditionally seen as a signal of a potential recession. The U.S. is not the only nation noticing significant inversion levels in decades. At the same time, the German 2-Year/10-Year inversion has reached its widest gap since 1992.
Below is a list of some of Wall Street's most popular large-scale bond funds along with a grouping of Treasury ETFs:
- iShares Core U.S. Aggregate Bond ETF ( NYSEARCA: AGG )
- Vanguard Total Bond Market Index Fund ETF Shares ( NASDAQ: BND )
- Direxion Daily 20+ Year Treasury Bull 3X Shares ( TMF )
- iShares 20+ Year Treasury Bond ETF ( TLT )
- SPDR Portfolio Long Term Treasury ETF ( SPTL )
- Vanguard Long-Term Treasury ETF ( VGLT )
- iShares 10-20 Year Treasury Bond ETF ( TLH )
- iShares 7-10 Year Treasury Bond ETF ( IEF )
- iShares U.S. Treasury Bond ETF ( GOVT )
- Vanguard Intermediate-Term Treasury ETF ( VGIT )
- Schwab Intermediate-Term U.S. Treasury ETF ( SCHR )
- iShares 3-7 Year Treasury Bond ETF ( IEI )
- iShares 1-3 Year Treasury Bond ETF ( SHY )
- Schwab Short-Term U.S. Treasury ETF ( SCHO )
- iShares Short Treasury Bond ETF ( SHV )
- SPDR Bloomberg 1-3 Month T-Bill ETF ( BIL )
More on the Yield Curve:
- Yield curve inversion widens to a four-decade high
- After The Yield Curve Inversion
- Implications Of An Inverted Yield Curve For U.S. Bond Returns
For further details see:
Yield curve between the US2Y and US10Y widens more than 100 basis points