There have not been many instances in the recent history of the U.S. Treasury market where the yield curve exhibited ________.

Question

Quizplus · Accepted Answer

A downward-sloping yield curve, also known as an inverted yield curve, is rare in the history of the U.S. Treasury market. It occurs when short-term interest rates are higher than long-term interest rates, which is typically seen as a sign of economic recession ahead. In contrast, a normal or upward-sloping yield curve is more common, where long-term interest rates are higher than short-term interest rates. A reverted yield curve is not a recognized term in finance.

There Have Not Been Many Instances in the Recent History