# A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
Inverted Yield Curve

This is an unusual situation in the economy where short-term interest rates are higher than long-term rates.

An inverted yield curve occurs when an increased demand for short-term credit drives up rates on treasury bills and money-market funds, while long-term rates move up more slowly because borrowers are not willing to pay for the higher, longer-term rates.

An inverted yield curve can indicate an unhealthy economy, marked by high inflation and low levels of confidence.

Also called a "negative yield curve."

 

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