U.S. government debt yields fell on Monday while the so-called yield curve continued to flatten amid projections of slowing economic growth and weaker inflation.
Portions of the yield curve, which first inverted earlier this month, remained downward sloping Monday with short-term 2-year Treasury note yields above 5-year Treasury note yields. At 11:58 a.m. ET, the yield on the benchmark 10-year Treasury note fell to around 2.849 percent, the 16th time in the past 18 trading sessions the benchmark rate has declined.
The 2-year note yield was last seen at 2.705 percent while the 5-year note yield slipped to 2.694 percent. The closely followed spread between the 2-year Treasury note yield and the 10-year Treasury note yield remains positive, though flattening at around 13 basis points. Yields fall when bond prices rise.
Investors are increasingly concerned about a possible economic slowdown, shortly after the U.S., China and Japan all reported weaker-than-expected economic data. It comes after Wall Street's main indexes closed more than 2 percent lower on Friday, registering their largest weekly percentage declines since March.
Short-term yields have been anchored in place in recent months as Federal Reserve Chair Jerome Powell led his colleagues in three increases to the overnight lending rate and, until recently, suggested that the central bank could continue to hike the overnight rate multiple times in 2019.