Although the U.S. economy is far from showing signs of shrinking growth, a key bond market signal that heralds an impending recession has been flashing red for the longest time in history. The U.S. 2-year and 10-year Treasury yield curves have been inverted since early July 2022. Deutsche Bank said in a report on Thursday that the number surpassed the previous record of 624 days of inversion set in 1978. Inversions themselves are generally detrimental to economic activity and financial markets, as higher short-term yields raise borrowing costs for consumer and business loans, while lower long-term yields discourage risk-taking behavior. This time, a U.S. recession did not materialize, even as the yield curve remained deeply inverted after steep interest rate hikes.