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Username: Maria

Rating:
Guru Stars

Asked to: Heng Kim

Date Created: 14 May 2018
Category 28
Tag Financial
Question What is an 'Inverted Yield Curve'?
Advice from Guru
Hi Maria,

An inverted yield curve is an interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality. This type of yield curve is the rarest of the three main curve types and is considered to be a predictor of economic recession.

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