yield curve

Inverted Yield Curve

Introduction Some news outlets in the US have reported that the yield curve for US-government bonds is inverted, or, in other words, the interest rate for bonds with a shorter horizon are now higher than interest rates for US-government bonds with longer maturities. This “inverted yield curve”" is seen as a good predictor for an upcoming recession. For better illustration the interest rates for 2 year, 3 year and 5 year bonds: