In debt financing, what shape is an "inverted yield curve"?

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In debt financing, what shape is an "inverted yield curve"?

2007-09-29 23:13:14 · 2 answers · asked by Tim 1 in Business & Finance ➔ Investing

2 answers

Please do a google search for inverted yield curve. You get a fund of information.

2007-09-30 03:34:36 · answer #1 · answered by subasu 6 · 1⤊ 0⤋

The yield curve is inverted when long term rates are lower than short term rates.

There is research that shows that when the five year US Treasury is lower than the 3-month T-Bill, a recession usually follows in three to five quarters. The yield curve was inverted during most of 2006 and part of 2007.

2007-09-30 06:51:25 · answer #2 · answered by Ranto 7 · 0⤊ 1⤋