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What Is an Inverted Yield Curve?

By Kristi WaterworthUpdated Apr 16, 2025 at 11:44 PM

Key Points

  • An inverted yield curve indicates short-term rates exceed long-term, suggesting economic caution.
  • Historically, consistent negative spreads on this curve have preceded recessions.
  • Investors might prioritize short-term bonds for better returns amidst economic uncertainty.

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