Inverted yield curve

Inverted yield curve in December 2006
Inverting / flattening yields on July 6, 2022
Positive yield curve on February 22, 2022
US Treasury interest rates compared to the Federal Funds Rate. When the shorter term treasuries get pushed above the longer term treasuries by the Federal Funds Rate it causes an inverted yield curve.
   10 Year Treasury Bond
   2 Year Treasury Bond
   3 month Treasury Bond
   Effective Federal Funds Rate
   CPI inflation year/year
  Recessions

In finance, an inverted yield curve is a yield curve in which short-term debt instruments (typically bonds) have a greater yield than longer term bonds. An inverted yield curve is an unusual phenomenon; bonds with shorter maturities generally provide lower yields than longer term bonds.

To determine whether the yield curve is inverted, it is a common practice to compare the yield on the 10-year U.S. Treasury bond to either a 2-year Treasury note or a 3-month Treasury bill. If the 10-year yield is less than the 2-year or 3-month yield, the curve is inverted.

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