U.S. 3-mnth/10-yr Treasury curve inverts first time since Oct

LONDON, Jan 28 (Reuters) - The U.S. Treasury yield curve, measured by the gap between yields on three-month and 10-year bonds, inverted on Tuesday for the first time since October in a sign investors are starting to fret about the economic impact from a virus outbreak in China.

An inverted curve, when longer-dated yields fall below shorter-maturity ones, has been a fairly reliable predictor of U.S. economic recessions in the past.

The falls in longer-dated Treasury yields in recent days came as investors dashed to buy safer assets, flattening the yield curve.

In London trade on Tuesday, the gap between yields on three-month notes and 10-year government bonds fell to -0.015 basis points . (Reporting by Dhara Ranasinghe; editing by Sujata Rao)

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