The US Treasury yield curve continues to sag.  As we wrote just a couple of days ago, “The yield curve has remained stubbornly inverted – even digging in deeper – at the short to medium end, with the seven year yield trading 15 bp below the one month, and the ten year only 2 bp higher. The steepest inversion is between six months and two years, with the two year yield a startling 27 bp below the six. This indicates the bond market is pricing in a reduction in short term yields in about six months.”

If anything, the picture continues to darken.  The week closed with the ten year yield flat with the one month yield:

US Treasury Daily Yield Curve