Bond Report: Treasury yields edge up for third straight session as traders await European Central Bank’s decision

U.S. bond yields were little changed to slightly higher on Wednesday, sending the 10-year back above 3%, as investors await the European Central Bank’s interest rate hike decision on Thursday and next week’s Federal Reserve policy meeting.

What’s happening

The 2-year to 10-year spread of minus 22 basis points left the yield curve meaningfully inverted, potentially signaling a looming economic downturn. It briefly narrowed to as low as minus 23.9 basis points during the day.

What’s driving markets

The…