United States Recession Prob: Yield Curve: 3 Month Treasury Yield data was reported at 2.250 % in Oct 2018. This records an increase from the previous number of 2.130 % for Sep 2018. United States Recession Prob: Yield Curve: 3 Month Treasury Yield data is updated monthly, averaging 4.620 % from Jan 1959 (Median) to Oct 2018, with 718 observations. The data reached an all-time high of 16.300 % in May 1981 and a record low of 0.010 % in Dec 2011. United States Recession Prob: Yield Curve: 3 Month Treasury Yield data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.S021: Recession Probability.

The 2020 recession did not follow the trend of previous recessions in the United States because only six months elapsed between the yield curve inversion and the 2020 recession. Over the last five decades, 12 months, on average, has elapsed between the initial yield curve inversion and the beginning of a recession in the United States. For instance, the yield curve inverted initially in January 2006, which was 22 months before the start of the 2008 recession. A yield curve inversion refers to the event where short-term Treasury bonds, such as one or three month bonds, have higher yields than longer term bonds, such as three or five year bonds. This is unusual, because long-term investments typically have higher yields than short-term ones in order to reward investors for taking on the extra risk of longer term investments. Monthly updates on the Treasury yield curve can be seen here.

We use the yield curve to predict future GDP growth and recession probabilities. The spread between short- and long-term rates typically correlates with economic growth. Predications are calculated using a model developed by the Federal Reserve Bank of Cleveland. Released monthly.

Prior to the 2020 recession, the yield curve was only inverted for 141 days, which was much shorter than the average 248 days preceding the previous five U.S. recessions. For instance, the yield curve was inverted for 235 days between the inversion in January 2006 and the start of the 2007-2009 recession. A yield curve inversion refers to the event where short-term Treasury bonds, such as one or three month bonds, have higher yields than longer term bonds, such as three or five year bonds. This is unusual, because long-term investments typically have higher yields than short-term ones in order to reward investors for taking on the extra risk of longer term investments. Monthly updates on the Treasury yield curve can be seen here.

United States Recession Prob: Yield Curve: 10 Year Treasury Yield data was reported at 3.150 % in Oct 2018. This records an increase from the previous number of 3.000 % for Sep 2018. United States Recession Prob: Yield Curve: 10 Year Treasury Yield data is updated monthly, averaging 5.750 % from Jan 1959 (Median) to Oct 2018, with 718 observations. The data reached an all-time high of 15.320 % in Sep 1981 and a record low of 1.500 % in Jul 2016. United States Recession Prob: Yield Curve: 10 Year Treasury Yield data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.S021: Recession Probability.

As of April 16, 2025, the yield for a ten-year U.S. government bond was 4.34 percent, while the yield for a two-year bond was 3.86 percent. This represents an inverted yield curve, whereby bonds of longer maturities provide a lower yield, reflecting investors' expectations for a decline in long-term interest rates. Hence, making long-term debt holders open to more risk under the uncertainty around the condition of financial markets in the future. That markets are uncertain can be seen by considering both the short-term fluctuations, and the long-term downward trend, of the yields of U.S. government bonds from 2006 to 2021, before the treasury yield curve increased again significantly in the following years. What are government bonds? Government bonds, otherwise called ‘sovereign’ or ‘treasury’ bonds, are financial instruments used by governments to raise money for government spending. Investors give the government a certain amount of money (the ‘face value’), to be repaid at a specified time in the future (the ‘maturity date’). In addition, the government makes regular periodic interest payments (called ‘coupon payments’). Once initially issued, government bonds are tradable on financial markets, meaning their value can fluctuate over time (even though the underlying face value and coupon payments remain the same). Investors are attracted to government bonds as, provided the country in question has a stable economy and political system, they are a very safe investment. Accordingly, in periods of economic turmoil, investors may be willing to accept a negative overall return in order to have a safe haven for their money. For example, once the market value is compared to the total received from remaining interest payments and the face value, investors have been willing to accept a negative return on two-year German government bonds between 2014 and 2021. Conversely, if the underlying economy and political structures are weak, investors demand a higher return to compensate for the higher risk they take on. Consequently, the return on bonds in emerging markets like Brazil are consistently higher than that of the United States (and other developed economies). Inverted yield curves When investors are worried about the financial future, it can lead to what is called an ‘inverted yield curve’. An inverted yield curve is where investors pay more for short term bonds than long term, indicating they do not have confidence in long-term financial conditions. Historically, the yield curve has historically inverted before each of the last five U.S. recessions. The last U.S. yield curve inversion occurred at several brief points in 2019 – a trend which continued until the Federal Reserve cut interest rates several times over that year. However, the ultimate trigger for the next recession was the unpredicted, exogenous shock of the global coronavirus (COVID-19) pandemic, showing how such informal indicators may be grounded just as much in coincidence as causation.

United States Recession Prob: Yield Curve: Spread data was reported at 0.856 % in Oct 2018. This records an increase from the previous number of 0.829 % for Sep 2018. United States Recession Prob: Yield Curve: Spread data is updated monthly, averaging 1.413 % from Jan 1959 (Median) to Oct 2018, with 718 observations. The data reached an all-time high of 4.146 % in Sep 1982 and a record low of -3.505 % in Dec 1980. United States Recession Prob: Yield Curve: Spread data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.S021: Recession Probability.

As of December 30, 2024, 14 economies reported a negative value for their ten year minus two year government bond yield spread: Ukraine with a negative spread of 1,370 percent; Turkey, with a negative spread of 1332 percent; Nigeria with -350 percent; and Russia with -273 percent. At this time, almost all long-term debt for major economies was generating positive yields, with only the most stable European countries seeing smaller values. Why is an inverted yield curve important? Often called an inverted yield curve or negative yield curve, a situation where short term debt has a higher yield than long term debt is considered a main indicator of an impending recession. Essentially, this situation reflects an underlying belief among a majority of investors that short term interest rates are about to fall, with the lowering of interest rates being the orthodox fiscal response to a recession. Therefore, investors purchase safe government debt at today's higher interest rate, driving down the yield on long term debt. In the United States, an inverted yield curve for an extended period preceded (almost) all recent recessions. The exception to this is the economic downturn caused by the coronavirus (COVID-19) pandemic – however, the U.S. ten minus two year spread still came very close to negative territory in mid-2019. Bond yields and the coronavirus pandemic The onset of the coronavirus saw stock markets around the world crash in March 2020. This had an effect on bond markets, with the yield of both long term government debt and short term government debt falling dramatically at this time – reaching negative territory in many countries. With stock values collapsing, many investors placed their money in government debt – which guarantees both a regular interest payment and stable underlying value - in contrast to falling share prices. This led to many investors paying an amount for bonds on the market that was higher than the overall return for the duration of the bond (which is what is signified by a negative yield). However, the calculus is that the small loss taken on stable bonds is less that the losses likely to occur on the market. Moreover, if conditions continue to deteriorate, the bonds may be sold on at an even higher price, partly offsetting the losses from the negative yield.

United States Recession Prob: Yield Curve: 3 Month Treasury Yield: Bond Equivalent data was reported at 2.294 % in Oct 2018. This records an increase from the previous number of 2.171 % for Sep 2018. United States Recession Prob: Yield Curve: 3 Month Treasury Yield: Bond Equivalent data is updated monthly, averaging 4.740 % from Jan 1959 (Median) to Oct 2018, with 718 observations. The data reached an all-time high of 17.237 % in May 1981 and a record low of 0.010 % in Dec 2011. United States Recession Prob: Yield Curve: 3 Month Treasury Yield: Bond Equivalent data remains active status in CEIC and is reported by Federal Reserve Bank of New York. The data is categorized under Global Database’s United States – Table US.S021: Recession Probability.

As of December 2024, all United Kingdom government debt securities were returning positive yields, regardless of maturity. This places the yield of both UK short term bonds and long term bonds above that of major countries like Germany, France and Japan, but lower than the United States. What are government bonds? Government bonds are debt instruments where a certain amount of money is given to the issuer, in exchange for regular payments of interest over a fixed period. At the end of this period the issuer then returns the amount in full. Bonds differ from a regular loan through how they can be traded on financial markets once issued. This ability to trade bonds makes it more complex to measure the return investors receive from bonds, as the price they buy a bond for on the market may differ from the price the same bond was initially issued at. The yield is therefore calculated as what investors can expect to receive based on current market prices paid for the bond, not the value it was issued at. In total, UK government debt amounted to over 2.4 trillion British pounds in 2023 – with the majority being comprised of different types of UK government bonds. Why are inverted yield curves important? UK government bond yields over recent years have taken on a typical shape, with short term bonds having a lower yield than bonds with a maturity of 10 to 20 years. The higher yield of longer-term bonds compensates investors for the higher level of uncertainty in the future. However, if investors are sufficiently worried about both a short term economic decline, and low long term growth, they may prefer to purchase short term bonds in order to secure assets with regular interest payments in the here and now (as opposed to shares, which can lose a lot of value in a short time). This can lead to an inverted yield curve, where shorter term debt has a higher yield. Inverted yield curves are generally seen as a reliable indicator of a recession, with inverted yields occurring before most recent U.S. recessions. The major exception to this is the recession from the coronavirus pandemic – but even then, U.S. yield curves came perilously close to being inverted in mid-2019.

This research considers why the yield curve slope ought to contain information about the future prospects of the economy. Two econometric models are examined that test the predictive power of the yield-curve slope relative to other recession predictors such as stock prices and the Commerce Department's index of leading indicators.

View the spread between 10-Year and 3-month Treasury Constant Maturities, which is used to predict recession probabilities.

In December 2024, the yield on a 10-year U.S. Treasury note was **** percent, forecasted to decrease to reach **** percent by August 2025. Treasury securities are debt instruments used by the government to finance the national debt. Who owns treasury notes? Because the U.S. treasury notes are generally assumed to be a risk-free investment, they are often used by large financial institutions as collateral. Because of this, billions of dollars in treasury securities are traded daily. Other countries also hold U.S. treasury securities, as do U.S. households. Investors and institutions accept the relatively low interest rate because the U.S. Treasury guarantees the investment. Looking into the future Because these notes are so commonly traded, their interest rate also serves as a signal about the market’s expectations of future growth. When markets expect the economy to grow, forecasts for treasury notes will reflect that in a higher interest rate. In fact, one harbinger of recession is an inverted yield curve, when the return on 3-month treasury bills is higher than the ten-year rate. While this does not always lead to a recession, it certainly signals pessimism from financial markets.

The spread between 10-year and two-year U.S. Treasury bond yields reached a positive value of 0.1 percent in November 2024. The 10-year minus two-year Treasury bond spread is generally considered to be an advance warning of severe weakness in the stock market. Negative spreads occurred prior to the recession of the early 1990s, the tech-bubble crash in 2000-2001, and the financial crisis of 2007-2008.

Monetary policy, the yield curve and the private sector behaviour of the US economy are modelled as a time-varying structural vector autoregression. The monetary policy shocks of the early 1980s explain a large portion of the persistence of inflation and the level of the term structure. Changes in inflation expectations implied by the yield curve account for the persistence of the federal funds rate. Failures of the expectations hypothesis are rare, and coincided with the credibility building of Paul Volcker's Fed tenure at the beginning of the 1980s and the sequence of consecutive policy rate cuts around the time of the early 1990s recession.

Graph and download economic data for Real-time Sahm Rule Recession Indicator (SAHMREALTIME) from Dec 1959 to Jun 2025 about recession indicators, academic data, and USA.

As of April 16, 2025, Germany's bond market displayed a positive spread of 77.2 basis points between 10-year and 2-year yields, indicating long-term rates above short-term ones. The 5-year versus 2-year spread was also positive, at 32.8 basis points. On the other hand, the 2-year versus 1-year spread was negative, at -8.5 basis points, suggesting a mildly inverted yield curve in shorter maturities. Negative spreads indicate a (partially) inverted yield curve. This often signals investor pessimism about short-term economic prospects, as investors seek the relative safety of long-term bonds, pushing those yields down relative to shorter-term bonds. An inverted yield curve is typically interpreted as a potential indicator of economic slowdown or recession, as it reflects expectations of lower interest rates in the future to stimulate the economy.

We estimate versions of the Nelson-Siegel model of the yield curve of US government bonds using a Markov switching latent variable model that allows for discrete changes in the stochastic process followed by the interest rates. Our modeling approach is motivated by evidence suggesting the existence of breaks in the behavior of the US yield curve that depend, for example, on whether the economy is in a recession or a boom, or on the stance of monetary policy. Our model is parsimonious, relatively easy to estimate and flexible enough to match the changing shapes of the yield curve over time. We also derive the discrete time non-arbitrage restrictions for the Markov switching model. We compare the forecasting performance of these models with that of the standard dynamic Nelson and Siegel model and an extension that allows the decay rate parameter to be time varying. We show that some parametrizations of our model with regime shifts outperform the single-regime Nelson and Siegel model and other standard empirical models of the yield curve.

Graph and download economic data for Market Yield on U.S. Treasury Securities at 30-Year Constant Maturity, Quoted on an Investment Basis (DGS30) from 1977-02-15 to 2025-07-02 about 30-year, maturity, Treasury, interest rate, interest, rate, and USA.

Recession Prob：收益率曲线：3月期短期国债收益率在10-01-2018达2.250%，相较于09-01-2018的2.130%有所增长。Recession Prob：收益率曲线：3月期短期国债收益率数据按月更新，01-01-1959至10-01-2018期间平均值为4.620%，共718份观测结果。该数据的历史最高值出现于05-01-1981，达16.300%，而历史最低值则出现于12-01-2011，为0.010%。CEIC提供的Recession Prob：收益率曲线：3月期短期国债收益率数据处于定期更新的状态，数据来源于Federal Reserve Bank of New York，数据归类于全球数据库的美国 – 表US.S021：衰退可能性。