Here is a quick primer on what a steep, flat or inverted yield curve means, how it has predicted recession, and what it might be signaling now.
The yield curve, which plots the return on all Treasury securities, typically slopes upward as the payout increases with the duration.
read more read moreWHAT DOES AN INVERTED CURVE MEAN?
Before this year, the last time the 2/10 part of the curve inverted was in 2019.
When the yield curve steepens, banks can borrow at lower rates and lend at higher rates.