The shape of the yield curve is seen as an indicator of the future state of the economy, as inversions of the curve have been a "reliable sign of looming recession," it said.
"Curves are flattening and some are negative. They're ultimately all telling you the same thing," Eric Theoret, global macro strategist at Manulife Investment Management, was quoted as saying.
The report said that a flattening curve could signal expectations of rate hikes in the near term and a weaker economic outlook.
The Fed on Wednesday imposed another 75-basis-point rate hike, the largest back-to-back rate increase in decades, in a bid to tamp down rampant inflation. It has already hiked interest rates by 225 basis points since March.
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