Recent inversion of yield curves in US, UK has sparked fear of an upcoming recession. This phenomenon last occurred before the Great Recession of 2008 and has preceded the last 9 recessions dating back to 1955.
Curiopedia
An inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This type of yield curve is the rarest of the three main curve types and is considered to be a predictor of economic recession. Historically, inversions of the yield curve have preceded many of the U.S. recessions. Due to this historical correlation, the yield curve is often seen as an accurate forecast of the turning points of the business cycle. More Info
Curated Coverage
Livemint – Recession is coming? Yield curves invert in US, UK for first time in a decade
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