Yield Curve Inverts for the First Time since 2007

A yield curve tracks the yields of Treasury securities maturing at different times. The narrowing of the difference between these yields is sometimes referred to as the “flattening of the yield curve.” In contrast, shorter-term security yields becoming larger than longer-term security yields is referred to as “yield curve inversion” (BND). Yield curve inversion is a cause for concern for some bond traders and investors, as it has been an indicator of upcoming recessions.