Why Wall Street freaks out when the yield curve inverts - The Australian Financial Review

An inverted yield curve is met with dread, so it’s probably worth an explanation to those not well versed in the ways of the bond market.

The curve plots the expected path of prevailing interest rates, and additional yield compensates for risk and uncertainty. The longer the period, the more the risk, and therefore the more compensatio… [+2875 chars]

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