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US yield curve steepens by most in three years

Colby Smith and Joe Rennison in New York

The US yield curve, watched nervously by investors for signs of an impending recession, steepened in the past week by the most in almost three years, reflecting optimism that a rate cut by the Federal Reserve will keep the US economy growing. The measure ended the trading week at minus 1.6 basis points, from minus 19 basis points a week earlier, the largest change over five trading sessions since the period after Donald Trump was elected US president in 2016.