US treasury yield curve turns flattest in a decade

The yield gap between the US 10-year yield and the 2-year yield, also referred to as the yield curve, has narrowed to 67.4 basis points; the lowest since Oct. 31, 2006.

A flatter yield curve usually represents falling long-term inflation expectations or rising short-term rate hike bets. Analysts also consider it as an advance indicator of economic recession.

Reuters report says, the tighter the spread is the result of low domestic inflation.