Last Update: 26 Nov 2020 9:15 GMT+0
3 countries have an inverted yield curve.
An inverted yield curve is an interest rate environment in which long-term bonds have a lower yield than short-term ones.
An inverted yield curve is often considered a predictor of economic recession.
|Totally Inverted||Partially Inverted||Minimally Inverted|
Detailed domestic spreads
The convexity of the yield curve can be estimated calculating the spread between Government Bonds with long, medium and short maturity.
If the spread between the 10 years and the 2 years Government Bond is negative, it's a strong signal of totally inverted yield curve.
Signals of partially or minimally inverted yield curve are a negative 5Y vs 2Y spread or a negative 2Y vs 1Y spread.
In the following table:
Cells with red background shows an inverted yield case.
Cells with yellow background shows a flat yield case.