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Inverted yield curve
Phenomenon when shorter term bonds yield higher interest rates than longer term bonds / From Wikipedia, the free encyclopedia
In finance, an inverted yield curve is a yield curve in which short-term debt instruments (typically bonds) have a greater yield than longer term bonds. An inverted yield curve is an unusual phenomenon; bonds with shorter maturities generally provide lower yields than longer term bonds.[2][3]
![Thumb image](http://upload.wikimedia.org/wikipedia/commons/thumb/4/46/Inverted_Yield_Curve_graph.webp/640px-Inverted_Yield_Curve_graph.webp.png)
![Thumb image](http://upload.wikimedia.org/wikipedia/commons/thumb/3/32/Inverting_-_Flattening_yields.webp/640px-Inverting_-_Flattening_yields.webp.png)
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![Thumb image](http://upload.wikimedia.org/wikipedia/commons/thumb/4/43/US_Treasury_interest_rates.webp/640px-US_Treasury_interest_rates.webp.png)
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10 Year Treasury Bond
2 Year Treasury Bond
3 month Treasury Bond
Recessions
To determine whether the yield curve is inverted, it is a common practice to compare the yield on the 10-year U.S. Treasury bond to either a 2-year Treasury note or a 3-month Treasury bill. If the 10-year yield is less than the 2-year or 3-month yield, the curve is inverted.[4][5][6]