The 7-year Treasury rate traded above the 10-year yield on Tuesday, inverting that part of the curve ahead of Wednesday’s Federal Reserve’s policy decision. The 7-year rate was at 2.13% Tuesday afternoon, while the 10-year rate traded around 2.12%. Inversions tend to eventually spread out to more widely followed parts of the curve — like the gap between 2-year and 10-year rates. An inversion of the 2s10s spread is typically seen as a harbinger of U.S. recession.
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