The economic condition were the yield on short-term treasury issues is greater then the yield on long-term securities. In theory, this scenario could lead to further declines in interest rates and possible recession.
An uncommon situation in which long-term interest rates have lower yields than short-term interest rates. also called negative yield curve. see also yield curve, normal yield curve, flat yield curve.
A rare occurence during which short-term rates are higher than long-term rates.
a curious situation because investors are earning more money on short-term investments than long-term ones, the opposite of what we'd expect
a particularly negative signal, in which long term interest rates are actually below short term rates
a rare event because investors tend to demand higher yields on longer-dated bonds to compensate for the risk of higher inflation later
a reliable indicator of approaching recession
a terrific predictor of a profit recession
A situation where short-term interest rates are higher than long term rates. Normally, lenders earn higher yields when committing money for longer periods; this is a positive yield curve. Inverted yield curves occur when surging demand for short-term credit drives up short term rates. Usually a sign of increased inflation accompanied by low levels of confidence in the economy. Historically, this has preceded a recessionary period.
When the Fed Funds rate pays higher interest than the 1 - 30 year Treasury Bond.
The curve formed when plotting yield vs. maturity during a period when short-term yields (interest rates) are higher than long-term yields. This occurs during periods of tight money and tight credit. It is also called a negative yield curve and descending yield curve.
When short-term interest rates are higher than long-term rates. This is considered to be a predictor of an economic downturn. Normally, long-term interest rates are higher than short-term rates.
Interest in Arrears Interest on interest
Usually a chart showing long-term debt instruments that have lower yields than short-term debt instruments. It is sometimes referred to as a negative yield curve.
The somewhat unusual phenomenon of short-term interest rates being higher than long-term rates. This results from high demand for short-term credit, which drives up rates on short-term instruments such as treasury bills. At the same time, borrowers are unwilling to make long-term commitments and this reduced demand results in long-term rates rising more slowly. The lack of longer term confidence that causes an inverted yield curve can be a sign of a faltering economy, and is often a warning of an impending recession.