Pro Tip
This is a FAR leading indicator!!
Why is the 10-year US Bond to 2-year US Bond spread important?
A negative 10-year and two-year U.S. Treasury bonds yield spread has historically been viewed as a precursor to a recessionary period. A negative 10-2 spread has predicted every recession from 1955 to 2018, but has occurred 6-24 months before the recession occurring, and is thus seen as a far-leading indicator.