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10Y Yield Dips to 4.46% as Curve Holds Positive Despite Flattening

· Economics · MarketsFN Data Team

Fixed Income · Treasury Yields · Mid-Week Update

The 10-year Treasury yield fell 3 bps to 4.46% on Tuesday, easing from recent highs while the 2Y-10Y spread narrowed to +27 bps, maintaining a positive but flattening curve signal.

The 10-year yield is up 1 bp this week but remains above its 3-month (4.41%) and 1-year (4.24%) averages. It sits 80 bps below its 52-week high (4.67%) and 49 bps above its low (3.97%), reflecting persistent volatility in 2026's rate environment.

The 2Y-10Y spread tightened 12 bps this week to +27 bps, matching its 52-week low. While still positive, the flattening suggests reduced growth optimism. Historically, spreads below +50 bps have preceded economic slowdowns, though not immediate recessions.

36-month yield spread chart
Fig. 2 — 2Y–10Y Treasury spread over 36 months. Green fill = normal curve; red fill = inverted (recession warning signal). Grey shading marks NBER-defined recessions where applicable.

Markets await Friday's PCE inflation data for Fed policy clues. A hot print could revive yield upside, while soft figures may extend the dip. Fed speakers and month-end portfolio rebalancing could also drive volatility.

Key Statistics at a Glance

EditionMid-Week Update
DateTuesday, June 23, 2026
10Y Yield4.46%
10Y Day-on-day▲ 3.0 bps
10Y Week-on-week▲ 1.0 bps
10Y YTD change+27.0 bps
10Y 3-month avg4.41%
10Y 1-year avg4.24%
10Y 52-week high4.67%
10Y 52-week low3.97%
2Y Yield4.19%
2Y–10Y Spread+0.270% (+27.0 bps)
Spread WoW▼ 12.0 bps
Spread 52-week high+0.740%
Spread 52-week low+0.270%
Curve signalPositive
Data: Federal Reserve Bank of St. Louis (FRED) · Series: DGS10, DGS2, T10Y2Y, USREC · Daily, business days only · Source: US Treasury / Federal Reserve.

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