Homrich & Berg sees 3M10Y yield curve spread signaling low recession risk over next year
Bitget2026/10/09 19:24Homrich & Berg analysis flagged a sharp divergence in Treasury curve signals, with 2Y10Y narrowing to 20 bps in September. At the same time, 3M10Y widened to 120 bps, a configuration it said points to low recession risk over the next year. The note said 3M10Y has historically been a cleaner recession-timing gauge than 2Y10Y, with fewer false alarms. It also highlighted a 3M10Y-under-2Y10Y cross as a confirmation tool; the related 3M2Y spread is widening, not inverting. Curve pricing implies policy is not yet restrictive for growth, though the 2-year outlook suggests additional hikes could push conditions toward too tight. Disclaimer: This news brief was created by Public Technologies (PUBT) using generative artificial intelligence. While PUBT strives to provide accurate and timely information, this AI-generated content is for informational purposes only and should not be interpreted as financial, investment, or legal advice. Homrich & Berg Inc published the original content used to generate this news brief on October 09, 2026, and is solely responsible for the information contained therein.
- Homrich & Berg analysis flagged a sharp divergence in Treasury curve signals, with 2Y10Y narrowing to 20 bps in September.
- At the same time, 3M10Y widened to 120 bps, a configuration it said points to low recession risk over the next year.
- The note said 3M10Y has historically been a cleaner recession-timing gauge than 2Y10Y, with fewer false alarms.
- It also highlighted a 3M10Y-under-2Y10Y cross as a confirmation tool; the related 3M2Y spread is widening, not inverting.
- Curve pricing implies policy is not yet restrictive for growth, though the 2-year outlook suggests additional hikes could push conditions toward too tight.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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