Course · Act I: Rates Move · Chapter 5
The yield curve and inversion
How to read the yield curve: normal, flat and inverted, the 10-year minus 2-year spread, two real Treasury curves from 2021 and 2023, and why inversions worry people.
Key terms
- Yield curve
- Treasury yields plotted against maturity, on one day. Normally slopes up.
- Inverted yield curve
- Short maturities yield more than long ones; 10-year minus 2-year below zero. Often, not always, a recession warning.
“The Yield Curve” is part of the full course: 7 puzzles on the yield curve and inversion. Gullwing and Osprey are fictional banks; the Treasury yields and Fed rates are real. Try this act’s free chapter, “A Loan You Can Sell”, first.
“The Yield Curve” is in Act I: Rates Move. 7 puzzles, unlimited retries.
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