US 10-year Treasury yields drop amid economic concerns

U.S. 10-year Treasury yields have fallen for nine of the last eleven days, now at 4.23%. This decline follows weak consumer and business sentiment reports, along with a rise in jobless claims and a significant drop in the Atlanta Fed GDPNow tracker. The current yield is below the Federal Reserve's target range of 4.25-4.50% and lower than 3-month Treasury bill rates at 4.30%. This inversion of the yield curve is often seen as a sign of an upcoming recession. Despite the inversion, previous trends from 2022 to late last year did not lead to a recession, leaving uncertainty about the current situation.