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MacroJuly 10, 20266 min read

The Yield Curve Explained

What the bond market is telling us about the economy.

What Is the Yield Curve?

A line plotting bond yields from shortest to longest maturity.

Normal vs Inverted

When short-term yields are higher than long-term, the curve is inverted — and that’s historically been a recession signal.

yield-curvebondsrecession