A downward-sloping yield curve is often seen as an indication that

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A downward-sloping yield curve, also known as an inverted yield curve, is often seen as a warning sign of an upcoming economic downturn or recession. This is because the yield on long-term bonds is typically higher than short-term bonds, but when investors anticipate a recession, they may shift their money into long-term bonds, driving down their yields and making the yield curve inverted. A recession can then follow due to decreased investment and consumer spending.

A Downward-Sloping Yield Curve Is Often Seen as an Indication