Mubasher: The inversion of the US Treasury yield curve is another signal that builds the case for interest rate cuts by the Federal Reserve, according to While House trade adviser Peter Navarro.

The gap between the two-year note yield and its 10-year debt inverted for the first time since 2007 on Wednesday, while the gap between the five-year Treasury bond yield and its 30-year counterpart flattened to 54 basis points.

“The kind of volatility you see today in the inversion of the yield curve is sending yet another signal that the Fed needs to lower [...] interest rates by 50 basis points [bps] as quickly as possible,” Navarro told Fox Business Network.

US Treasury yields hit a new record low on Wednesday as investors sought the safest parts of the market amid concerns about the impact of trade disputes as well as geopolitical uncertainties.