When long-term rates are lower than short-term rates, the market is signaling that it expects short-term rates to fall.

Name: When long-term rates are lower than short-term rates, the market is signaling that it expects short-term rates to fall.
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This situation, known as an inverted yield curve, typically indicates that investors expect future economic weakness, which would lead to lower short-term interest rates as central banks attempt to stimulate the economy.

When Long-Term Rates Are Lower Than Short-Term Rates, the Market