What Is the Yield Curve?
The yield curve plots bond yields across maturities. When it inverts, it has historically warned of
recession, a deep source of market fear.
1
Rates by maturity
Plots bond yields from short to long term.
2
Normally upward
Longer loans usually pay more.
3
Inversion warns
When it flips, a recession has often followed.
Source: CFGI
Markets