US treasury yield spotlights recession worries

Concerns about the lagging economic impacts of the Fed’s aggressive path of rate hikes have kept the yield curve inverted for more than a year. — Reuters

NEW YORK: Expectations of another rate hike by the Federal Reserve (Fed) to tame stubbornly high inflation helped push a closely watched part of the US treasury yield curve to its deepest inversion since 1981 on Monday, once again putting a spotlight on what many investors consider a time-honoured recession signal.

The US central bank has hiked interest rates aggressively over the last year to fight inflation that hit around 40-year highs and remains above its 2% target rate.