US Yield Curve Disinverts as Soft Labor Data Fuels Fed Cut Bets.

The US yield curve has inverted for the second time since 2022, with the yield on the two-year note falling below that of the 10-year note. This inversion was driven by weaker-than-expected job openings data, which has increased expectations of interest rate cuts by the Federal Reserve. The inversion of the yield curve is seen by some as a sign of an impending economic downturn. Traders have fully priced in a quarter-point rate cut at the upcoming Fed policy meeting, with a 30% chance of a half-point reduction. [Extracted from the article]