We have been watching out for the US Treasury yield curve to invert (e.g, 2-year Treasury yields greater than 10-year Treasury yields).
And the US Treasury 10Y-2Y slope has flattened to 18.75 BPS.
While the 10Y-2Y Treasury curve is flattening, the US Overnight Indexed Swap (OIS) is showing a decline at 3-5 years while the US Treasury actives curve is increasing over the 3-5 year tenor.
If we look at the forward curve for OIS Swaps (2Y1M-1Y1M), we see that the spread is now negative (or inverting) for the first time since June 2007, before The Great Recession began.
As Fed Chair Jerome Powell said recently, as long as the economy is hot, The Fed will keep on raising interest rates.