One of the bond market’s most widely followed recession gauges dipped further below zero on Wednesday, signaling deepening concerns about the U.S. economic outlook. The spread on 2- and 10-year Treasury yields shrank to as little as minus 79.5 basis points, remaining at its most inverted level in 41 years. The inversion was being driven by a continued drop in the 10-year Treasury rate, to 3.72%, as investors fret about China’s ongoing COVID-19 restrictions.
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