Understanding Yield Curve Inversion: Market Signals and Economic Indicators
·6 mins
Decoding Market Signals # Financial news often references “yield inversion”—typically referring to the difference between 10-year and 2-year U.S. Treasury bond yields. This metric attracts attention because when it turns negative (inverts), many interpret it as signaling economic contraction. Understanding this phenomenon requires exploring how bond markets function and what they tell us about economic expectations.