Luke MacGregor | Bloomberg | Getty Images
Britain’s government bond yield curve inverted on Wednesday for the first time since the global financial crisis, traditionally a sign that some investors think a recession is nearing.
The yield on the 10-year gilt fell below the yield on the two-year gilt shortly after 1000 GMT for the first time since August 2008, according to data from Refinitiv.
Normally, a yield curve slopes upwards as investors expect to be compensated for taking on the risk of owning longer-maturity debt.
An inversion – when shorter-dated yields are higher than longer-dated ones – is sometimes considered a warning of a risk of recession, especially in the United States.