yr/10-yr gilt curve regains upward slope after week-long inversion
LONDON, Aug 22 (Reuters) - Britain's government bond yield
curve briefly regained its normal upward slope on Thursday,
after inverting last week for the first time since 2008 in a
potential recession warning sign.
Boosted by comments from German Chancellor Angela Merkel,
who said an Irish border solution could be found before the Oct.
31 Brexit deadline, the yield on the 10-year gilt
traded fractionally higher than the yield on the two-year gilt
, according to data from Refinitiv.
A yield curve typically slopes upwards as investors expect
to be compensated for taking on the risk of owning
An inversion - when shorter-dated yields are higher than
longer-dated ones - is sometimes considered a warning of a risk
of recession, especially in the United States.
The two-year/10-year spread moved above zero around 1200
GMT, steepening 3 basis points on the day to slope upwards by
0.2 basis points, though it struggled to hold this and sloped
downward by 0.1 basis points at 1425 GMT.
The yield on 10-year British gilts touched its highest level
since Aug. 8 at 0.531% on Thursday afternoon.
(Reporting by William Schomberg, editing by David Milliken)
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