Feb 24, 2020 - Economy & Business

The yield curve makes its deepest inversion since October

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Data: U.S. Treasury; Chart: Danielle Alberti/Axios

The U.S. Treasury yield curve inverted again, with 3-month Treasury bills holding a higher yield (1.56%) than 10-year Treasury notes (1.46%).

The big picture: This is the second time the yield curve has inverted in a matter of weeks, and the third time in a matter of months. It's the deepest the yield curve has been inverted since Oct. 9.

Why it matters: Economists at the Fed call the 3-month/10-year inversion the "best summary measure" of economic downturn and a yield curve inversion has preceded every recession of the last 50 years within approximately six to 24 months.

Go deeper: The yield curve and what it says about the economy

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Retail maintains its iron stomach

Illustration: Aïda Amer / Axios

The stock market is down significantly, but insofar as that market-reporting cliché the "wave of selling" is anywhere to be seen, it isn't coming from mom-and-pop investors.

By the numbers: As stocks plunged on Monday, more than twice as many Fidelity customers were buyers than sellers.

10-year Treasury yield drops below 1.3% for the first time in history

Data: FactSet; Chart: Axios Visuals

The bond market set a significant milestone on Thursday, with bond yields — as measured by the yield on the benchmark 10-year Treasury note — dropping below 1.3% for the first time in history.

By the numbers: The yield was above 3% as recently as November 2018.

Wall Street's coronavirus anxiety hits new heights

A board displaying the foreign exchange rate of the US dollar against the Japanese yen, next to the Tokyo Stock Exchange in Tokyo. Photo: Kazuhiro Nogi/AFP via Getty Images

Trading activity Sunday night shows the recent tumult on Wall Street will continue.

What's going on: The yield on the benchmark government bond continued its swift slide lower as nervous investors pile into the safe-haven asset, while pre-market trading pointed to steep declines for U.S. stocks. Oil prices dropped sharply.