Inverted yield curve: Does the bond market really signal we’re heading for a recession?

Market indicator that preceded seven previous US recessions has flipped - what does this mean?

A closely watched indicator has signalled that the markets are becoming increasingly pessimistic about the future of the US and UK economies.Traders and economists are concerned that that the yields are higher for short-term bonds than for bonds maturing further away in the future. That is unusual as investors generally want a larger return if they are going to lock their cash away for longer.They are, effectively, the rates of annual interest paid out to investors by bonds.

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