While the US Treasury yield curve has yet to invert (slope < 0), the US Dollars Swaps curve has inverted with spreads greater than 20 years going negative.
(Bloomberg) — Dollar swap spreads curve steepens as buyers of long-end Treasuries emerge, pushing 5s30s to fresh session lows; move has extended widening in long-end spreads, which initially started during early Treasuries selloff.
Hedge fund demand seen in long end of the Treasuries curve, New York-based trader says; 30-year yields topped during morning session at 3.242% but remained inside Wednesday’s high
Demand in long end has tightened 5s30s curve by ~0.6bp on the day
USD 30-year swap spreads wider by 1.1bp, reversing tightening seen in prior two sessions; spreads started to widen amid early Treasuries selloff, pointing to paying flows extending the move lower, as USZ8 bottomed at 139-24
Dollar swap spreads curve is downward sloping and INVERTED beyond 20 years.
Fed Chair Powell’s reaction?