Summary of What is the Yield Curve, and Why is it Flattening?

00:00:00 - 00:05:00

The yield curve is a graphical representation of the difference in interest rates between different bond maturities. The shape of the yield curve is important because it can signal the likelihood of a recession. When the yield curve flattens, it is typically a sign that economic conditions are deteriorating.

• 00:00:00 The yield curve is a graphical representation of the difference in interest rates between different bond maturities. The shape of the yield curve is important because it can signal the likelihood of a recession. When the yield curve flattens, it is typically a sign that economic conditions are deteriorating.
• 00:05:00 The yield curve is a graph that shows the different yields that are available on different lengths of government bonds. The yield curve is flattening, which means that investors are more interested in short-term government bonds than in long-term government bonds. This could mean that we are about to enter a recession.