Talk of recession has picked up again. The reason might sound complicated, but the principle is fairly basic. In financial parlance, we’re talking about the inversion of the yield curve. Here’s what that means … and how it might take a bit of time to know the consequences. The U.S. Treasury Department sells government bonds at various maturity dates — ranging from one month to 30 years — and it pays interest on that money it is borrowing. The “yield curve” simply represents the relationship between interest rates on short-term and longer-term securities.
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