(Bloomberg) -- The recent performance of the US Treasuries yield curve is “highly suggestive of imminent recession,” according to DoubleLine Capital LP Chief Investment Officer Jeffrey Gundlach.

Two-year Treasury yields slumped as much as 24 basis points on Monday amid bets that the Federal Reserve will scale back interest-rate hikes. That sent the yield curve climbing 16 basis points, the most since March 2020. Short-end yields had jumped to the highest level since 2007 last week.

Goldman Sach Group Inc. no longer expects the Fed to increase rates next week amid concerns about financial strains at the US regional bank level. The two-year yield fell to 4.34%, set for its steepest three-day decline since October 1987.

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