Question: Please explain the difference between the short-term bond yield curve and the long-term bond yield. Why is it that if the short-term yield is higher

Please explain the difference between the short-term bond yield curve and the long-term bond yield. Why is it that if the short-term yield is higher than the long-term yield, that is a possible sign of an oncoming recession? Thank you.

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!