After a long inversion, the 10Y–2Y yield spread is accelerating higher, now reaching a new cycle high around +0.74%.
⚠️ This move is not driven by falling short-term rates.
Instead:
Long-term yields are holding firm
Growth expectations are cooling
In other words, the curve is steepening for the “wrong reason” — a signal markets are repricing future growth risk rather than pricing in easy policy.
This shift is worth watching closely.