The 10-2 Year Treasury Yield Spread has been inverted since July 7, 2022, marking the longest inversion in U.S. history at over two years, breaking the 1978 record of 624 days.

An inverted yield curve, where short-term bonds yield more than long-term ones, is often a precursor to economic downturns.

This prolonged inversion suggests potential severe recession risks, indicating deep concerns about future economic stability.

Despite this warning, the U.S. economy has continued to outperform expectations, with no recession having materialised yet.

The ongoing inversion highlights a significant anomaly in the financial landscape, and emphasises uncertainty surrounding the economic outlook.