You have heard the term “yield curve.” But what is it and why is it relevant? Here is a good article that makes sense of another financial mystery.
THE YIELD CURVE has lately received a lot of press. Specifically, the inversion of the yield curve has many people worried that a recession is around the corner. I’ve been spending a lot of time recently thinking about the yield curve. I need to get a life, right? You may be asking yourself, “Why should I even care about the yield curve, whatever that is?” Here’s why: The yield curve has inverted prior to every U.S. recession since 1970.
Source: Yielding Clarity – HumbleDollar