What is a Yield Curve Inversion & Why It Matters?

A yield curve inversion happens when short-term bonds offer higher returns than long-term ones — an unusual and often ominous signal. 💡 It typically hints at a coming recession, as investors flock to long-term bonds for safety. 📉 Historically, inverted yield curves have preceded major economic slowdowns. Keep an eye on the 10Y–2Y spread — when it flips, markets start bracing for impact.