Skip to main content

Money and Financial Markets

(PDF PDF icon)

Interest rates have dropped slightly over the past month, but the yield curve continues its inversion (short rates higher than long ones), with a curious peak at the six-month maturity. Since last year, short rates have moved up substantially more than long rates, sending the 10-year, three-month and the 10-year, two-year spreads below zero. Because the yield curve frequently inverts before recessions (including the two most recent), a closer look at what’s happening to the yield curve seems appropriate.


Suggested citation: “Money and Financial Markets,” Federal Reserve Bank of Cleveland, Economic Trends, no. 06-10, pp. 05-07, 10.15.2006.

Upcoming EventsSEE ALL