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YIELD_CURVE_10Y_2Y

10Y–2Y Treasury spread — the classic recession indicator

derivedlive

Official name: Yield Curve Slope (10Y - 2Y)

Frequency: DailyUnits: Percent12 460 observations

Latest value

0.5100

as of 2026-04-09

All-time percentile

40th

1-year change

+18.6%

all-time low: -2.41all-time high: 2.91

Time series

Showing 624 of 1 248 data points

About this series

The spread between the 10-year and 2-year US Treasury yields (DGS10 minus DGS2). Positive values are normal: long-term rates exceed short-term. Negative values ("inversion") are unusual and historically significant.

Why it matters: Yield curve inversions — when 2Y exceeds 10Y and the spread goes negative — have preceded every US recession since the 1950s, usually by 6 to 24 months. It's one of the most reliable leading indicators in macro, with few false positives. When the curve is deeply positive, markets expect growth and normal Fed transmission; when it inverts, they're pricing Fed cuts (i.e. expecting a downturn the Fed will have to respond to).

How to read it: Zero is the inversion line. Above zero = normal; below zero = inverted. The depth and duration of inversion matter: brief shallow inversions (–10 bps for a few weeks) are weaker signals than deep sustained ones (–50 bps for months). Historical warnings have come from periods where the spread spent 6+ months below zero.

Caveats: Inversion doesn't give a precise timing — the lag to recession has varied from 6 to 24 months. Also, un-inversion (the curve steepening back into positive territory) has often happened right before the recession actually starts. Don't take a return to positive as an all-clear.