Recession watch: What is an ‘inverted yield curve’ and why does it matter?

Stock markets tanked Wednesday after the bond market sounded a loud warning that the U.S. economy might be headed toward a recession. Investors
are spooked by a scenario known as the “inverted yield curve,” which
occurs when the interest rates on short-term bonds are higher than the
interest rates paid by long-term bonds. What it means is that people are
so worried about the near-term future that they are piling into safer
long-term investments.

Publisher: Washington Post | Author: Jonnelle Marte

TAGS
economy, recession, and wall street
DATE PUBLISHED
2019-08-15 (Modified: 2019-08-15)

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https://www.washingtonpost.com/business/2019/08/14/recession-watch-what-is-an-inverted-yield-curve-why-does-it-matter/

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