The spread between the 2-year Treasury note yield TMUBMUSD02Y, 0.136% and the 10-year note yield TMUBMUSD10Y, 0.657% touched its flattest level since 2007, amid a searing rally in long-dated government paper on Monday. A widely-watched gauge of the yield curve by market participants, the 2-year/10-year spread narrowed to 6 basis points, according to FactSet data. This comes as the 10-year Treasury note yield has nearly halved since it reached a multiyear peak of 3.25% in last October, with the benchmark rate trading at 1.65% on Monday. Debt prices move in the opposite direction of yields. A flatter yield curve can indicate investor worries that monetary policy remains too tight. Though the 3-month/10-year spread is already negative, investors had previously pointed to the lack of an inversion on the 2-year/10-year spread as a sign that the bond-market was not pointing to an imminent recession, and that the Federal Reserve would secure a soft-landing for a U.S. economy through "insurance" rate cuts.