Main yield curve nearly inverts as 10-year yield tops 2-year rate by just 2 basis points

The yield on the benchmark 10-year Treasury note threatened to break below that of the 2-year U.S. note on Tuesday as investors rushed toward safe haven assets amid global growth concerns.

The traditionally watched 2-year and 10-year Treasury curve is just 2 basis points away from inversion, a phenomenon heralded by many as a recession indicator. Investors are now demanding higher interest rates on short-term debt than they are longer term debt, a phenomena known as an “inverted yield curve.”

The yield on the benchmark 10-year Treasury note rose to 1.685%, just above that on the 2-year security at 1.665% and bringing the spread between the two yields to just 2 basis points. It narrowed to a fraction of 1 basis point earlier in the session. A basis point is one hundredth of one percent.

(Read more: CNBC)