According to CoinMeta, the yield spread between 2-year and 10-year U.S. Treasury bonds narrowed to 17 basis points last week, the tightest since early 2025. Currently, the yields for 2-year and 10-year bonds are around 4.9% and 5.2%, respectively. The market expects the Federal Reserve to raise interest rates at least three times in the coming year, by 25 basis points each time. Historical data shows that inverted yield curves have occurred before each of the last eight U.S. recessions since the 1960s. The bank index fell 10% last week from its recent high. A strategy director stated that if the yield curve inverts or flattens, it will weaken the market's belief in a strong U.S. economy. The Gennadiy Goldberg at TD Securities believes that there is limited room for the short term to continue outperforming the long term significantly.