U.S. 5-year and 30-year Treasury yields on Monday inverted for the first time since 2006, raising fears of a possible recession.
The yield on the 5-year Treasury note rose to 2.56%, while the 30-year yield fell to 2.55%. 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.
At its high of the session, the 5-year yield hit a high of 2.67%.
To be sure, the main yield spread that traders watch — the spread between the 2-year and the 10-year rate — remained positive for now. And investors for the time being largely ignored the 5-30 negative rate spread, with the S&P 500 gaining for the day.
Maggie Fitzgerald & Vicky McKeever | CNBC