US 10Y-2Y Spread at 0.46 Points in May 2026, Down 4.17% Over the Month

US Yield Curve: What Does This Spread Indicate?

The spread between the US 10-year and 2-year rates stands at 0.46 points as of May 28, 2026, according to the series published by the Federal Reserve Bank of St. Louis using data from the U.S. Department of the Treasury. This gap has decreased compared to April 28, 2026, when it was at 0.48 points, a decline of 4.17%. Year-over-year, it has also fallen from 0.59 points on May 28, 2025. This gap, known as the 10Y-2Y spread, measures the difference in yield between US 10-year and 2-year government bonds. When positive, the long-term yield remains higher than the short-term yield; when it turns negative, it is referred to as an inversion of the curve, a historically monitored signal due to its association with an increased risk of economic slowdown. Here, the spread remains positive but has compressed in recent sessions. Observations from May 2026 show values ranging from 0.43 to 0.54 points, with a level of 0.46 points on May 28. This trend indicates a flattening of the curve on the 2-10 year segment, rather than an inversion. Investors monitor this indicator as a market signal on expectations of growth, inflation, and monetary policy.