It’s easy to understand.
KEY TAKEAWAYS
A yield curve illustrates the interest rates on bonds of increasing maturities.
An inverted yield curve occurs when short-term debt instruments carry higher yields than long-term instruments of the same credit risk profile.
Inverted yield curves are unusual since longer-term debt should carry greater risk and higher interest rates, so when they occur there are implications for consumers and investors alike.
An inverted Treasury yield curve is one of the most reliable leading indicators of an impending recession.
https://www.investopedia.com/articles/basics/06/invertedyieldcurve.asp
I read your post earlier! :) Thanks!
Oh ok, that was what I was saying then without knowing the term. Does that mean interest rates drop in a recession? I guess I never paid attention