When interest rates on short-term bonds exceed those on long-term bonds, a recession is likely to occur.

Name: When interest rates on short-term bonds exceed those on long-term bonds, a recession is likely to occur.
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This situation, known as an inverted yield curve, is considered a predictor of economic recession because it indicates that investors expect lower interest rates in the future, often due to a slowdown in economic growth.

When Interest Rates on Short-Term Bonds Exceed Those on Long-Term