Economy, asked by bhatiashabbir9960, 9 months ago

Why does yield curve inversion signal recession?

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Answered by Utkarshkesharwani933
0

Answer:

An inverted yield curve is when the yields on bonds with a shorter duration are higher than the yields on bonds that have a longer duration. It's an abnormal situation that often signals an impending recession. In a normal yield curve, the short-term bills yield less than the long-term bonds.

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