It's Different This Time

From a Reuter's article on Chicago Fed comments:

Moskow said the current flat U.S. Treasury yield curve does not suggest a recession is on the way, as many have claimed.

The two-year/10-year Treasury yield spread briefly inverted in late December, when short-term yields traded higher than those of longer-dated government debt.

That shift has often been linked to a pending economic slowdown. "I don't see this as forecasting any kind of recession," Moskow said, adding that stubbornly low long-term yields remain a puzzle with several possible explanations.

You can read the original speech at the Chicago Federal Reserve website.