A lot people are wondering if the inverted yield curve means the US economy is headed for a recession:
Recessions And Yield-Curve Inversion: What Does It Mean
Recessions, and the fear that another one is just around the corner, explained
My answer is the same as it was last year (and the year before that, and that, and that….) when this exact question was asked: there will be no recession. The inverted yield curve is just temporary and not indicative of recession. It is much more likely that bonds will snap-back than the economy go into recession and the fed lower rates. This means longer-term treasury bonds and corporate bonds offer a poor risk-to-return profile compared to cash and short-duration bonds, because the only way the curve will stay inverted is if the economy shows signs of recession within this year–and or–if the fed begins cutting rates, and I see neither happening.
10-year Treasury yields will likely return to 2.7% soon.