What is an Inverted Yield Curve, and Does it Predict a Recession?

“Wall Street has gotten extremely twitchy recently for a host of real world reasons, but this week, a more obscure recession warning bell sounded: The yield curve inverted. To be clear, this is an effect, not a cause, of pessimistic investor sentiment — but at the same time, fear breeds more fear.” –The Motley Fool

For more trends in fixed income, visit the Fixed Income Channel.