What is the yield curve, and should you be worrying about it?

“The #1 predictor of economic recessions” has been inverted for a full month now.

WHAT IS THE YIELD CURVE

The yield curve, as shown in the example above, is a graph that plots the relationship between interest rate yields and time lengths, specifically for bonds. In the graph above, you can see that there is a higher return for the longer lengths of time.

This is the way the yield curve is “supposed” to look in a healthy economy; higher returns are correlated