is an inverted yield curve good or bad 
an inverted yield curve occurs when short term interest rates exceed long term rates this isn t usually a great sign 1 historically an inverted yield curve has been viewed as a signal of a looming recession the bottom linethe yield curve shows the cost of borrowing money over different periods when it is flat this usually means investors don t expect much change in interest rates and a two year bond could pay the same return as a 30 year bond this isn t a positive outlook a flattening yield curve hints that investors are worried about the economy s direction and are expecting a slowdown 