So maybe we shouldn't worry about the yield curve inverting. The U.S. Treasury yield curve is said to be “inverted” when the yield on short-term bonds is higher than that on long-term. This is why an inverted yield curve is often seen as an indicator of a forthcoming recession. But early in December, according to another measure, the yield curve did invert: the yield on 2-year USTs briefly rose above the 5-year yield. We should indeed worry about the possibility that the U.S. Treasury yield curve might invert.

Source: Forbes December 31, 2018 19:18 UTC