The 10-year US Treasury note yield fell 9bps to 1.523% on Friday, its lowest close since August of 2016 and the 2-year Treasury note dropped 7.8bps to 1.528%. It is the first time that the yield curve closes inverted since 2007. At the same time, the 30-year bond yield tumbled 8.8bps to 2.018%. Historically, the United States Government Bond 10Y reached an all time high of 15.82 in September of 1981 and a record low of -0.65 in March of 2017.
The United States Government Bond 10Y is expected to trade at 2.04 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 2.16 in 12 months time.