You wrote, "However, when the economists and market participants expect a recession, the yields curve invert...

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Finance

You wrote, "However, when the economists and market participantsexpect a recession, the yields curve invert as well, which meansthat the higher duration bond yields are lower than, the lowerduration bond yields." I wonder if you could explain and elaborateon the topic more. Why an inverted yield curve signals a recession?Provide examples to illustrate your points.

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An inverted yield curve implies that the longterm yield is lesser than the shortterm yield In a normal yield Curve the investors expect higher yield in the longterm than in the short term See Answer

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