U.S. government debt yields declined on Wednesday after government consumer prices data reflected tame inflation.
The yield on the benchmark 10-year Treasury note sat lower at around 2.34 percent at 1:18 p.m. ET, while the yield on the 30-year Treasury bond was lower at 2.791 percent. Bond yields move inversely to prices.
The spread between the 2-year Treasury note and the 10-year Treasury note hit a fresh low of 0.634, its lowest level since Nov. 2007 when the spread closed at 0.5875.
A flattening yield curve sometimes leads to an inversion, whereby the short-end rate would actually go higher than the longer-end yield, implying added risk in the near-term. That is typically viewed as a recession signal, and the flattening curve is a warning of that.