How do different models explain an inverted yield curve? Check all that apply. It could be good news (lower interest rates strengthen real estate market) or it could be bad news (central banks have cut interest rates because they are worried about an impending economic slowdown and there are too many homes being built and sold). The economy is headed for a slowdown or a recession. It could be good news (savers have uses for funds) or bad news (savers are worried about the future). Long-term yields fell, while short-term yields increased; thus, these markets are different. Economic and financial market conditions are not expected to change much at all over time