Currently, on May 28th 2023, the yield curve for U.S. Treasury Bonds is inverted. This means that the interest rates for short term debt are higher than the interest rates for long term debt. For example, the interest rates for 1 month bonds are 6.02%, the interest rates for 1 year bonds is 5.25%, and the interest rates for 30 year bonds is 3.96%. In contrast, typically the yield curve slopes the opposite direction with longer duration riskier bonds having higher interest rates than shorter duration bonds. The yield curve being inverted indicates that something unusual is happening in the economy.
What Does the Inverted Yield Curve Mean?
What Does the Inverted Yield Curve Mean?
What Does the Inverted Yield Curve Mean?
Currently, on May 28th 2023, the yield curve for U.S. Treasury Bonds is inverted. This means that the interest rates for short term debt are higher than the interest rates for long term debt. For example, the interest rates for 1 month bonds are 6.02%, the interest rates for 1 year bonds is 5.25%, and the interest rates for 30 year bonds is 3.96%. In contrast, typically the yield curve slopes the opposite direction with longer duration riskier bonds having higher interest rates than shorter duration bonds. The yield curve being inverted indicates that something unusual is happening in the economy.