Why Yield Curves Can Be Bull or Bear, Flat or Steep

Last year, the yield curve went mainstream as an economic indicator, as inversions of the curve sent chills down investors’ spines. That’s because inversions — times when long-term interest rates are lower than shorter ones — have often heralded recessions. Since then, we have indeed fallen into a recession, but one driven by the pandemic, an unforeseen factor. Now the yield curve is showing what else it can do. Currently, bear steepening has taken hold, driven by a tidal wave of monetary supp

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