Yield Curve Inversion

Yield inversion typically refers to a case where long-term government bond yields are below short-term government bond yields.

Usually, the opposite is true, as yield curves are generally upward-sloping. That's because investors demand more compensation (higher rates) for the extra risk of lending their money for longer terms.

A negative (i.e., inverted) yield curve is a popular recession indicator. When the 10-year government yield falls below the 2-year government yield, for example, a recession often follows within roughly 12-24 months.

You've successfully subscribed to
Great! Next, complete checkout for full access to
Welcome back! You've successfully signed in.
Unable to sign you in. Please try again.
Success! Your account is fully activated, you now have access to all content.
Error! Stripe checkout failed.
Success! Your billing info is updated.
Error! Billing info update failed.