Yield Curve Explained: Shapes, Inversion, Recession Signal
What the Treasury yield curve is, what each shape means, and why inversion has preceded every U.S. recession since the late 1960s.
What the Treasury yield curve is, what each shape means, and why inversion has preceded every U.S. recession since the late 1960s.
US corporate bond issuance hit $1.23T through May 2026 as hyperscalers tap the market to fund AI capex on a historic scale.
The Fed held rates 12-0 but its new dot plot now sees fed funds at 3.8% by year-end, above the current 3.5-3.75% band – a hawkish first move under Chair Warsh.
Treasury sells $24B in 5-year notes hours after the Fed decides June 17, then a 2y/5y/7y trio Jun 23-25 — ~$200B of supply in seven days.
Treasury sold $22B of 30-year bonds at 4.844% Thursday with a 2.43 bid-to-cover — average demand, a quiet rebound from May’s first-above-5% scare.
What the yield curve is, why inversion has preceded every US recession since 1970, and how to read the current US Treasury curve as of June 1, 2026.
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Plain-English guide to municipal bonds: GO vs revenue, how the federal tax exemption changes your real yield, and why munis default less than corporates.
A plain-English guide to the Treasury yield curve: what it is, the four shapes, why it can invert, and what each shape says about the economy.