Inverted Yield Curve

Bond yields reflect the government's interest payments on loans of varying durations, with shorter terms typically offering lower rates. Currently, the yield curve is inverted, indicating that short-term rates exceed long-term rates, which suggests economic uncertainty and a potential slowdown. This inversion often precedes a recession, with predictions pointing towards a possible downturn in late 2024 or early 2025, though there are signs it could be a soft landing.