Treasury Yield Curve Inversion

Stock markets plunged on December 4th, 2018 on the fears that the gap between long-term and short-term treasury yields is narrowing.

In general the 10-year yield should be much above 2-year. The narrowing shows that investors are loosing confidence in the current economic conditions and parking money in long-term bonds. With more investment in long-term bonds, the supply-demand ratio changes pushing down the yield lower.

An inversion of the gap/spread is an indicator of recession. This was reason for the market crash. Ref: https://www.forextraders.com/forex-news/are-you-aware-of-our-most-accurate-leading-indicator-of-economic-peril/

In addition there are other indicators that long-term yields are going lower that short-term. See the spread between 3yr to 5yr yields on 12/3 as compared to 11/20.