Source: https://mochatrade.com/learn/glossary/inverted-yield-curve

# Inverted yield curve
URL: https://mochatrade.com/learn/glossary/inverted-yield-curve
Last modified: 2026-10-17

An inverted yield curve is when short-term Treasuries yield more than long-term ones, usually the two-year above the ten-year. It means the market expects [the Fed to cut later because growth will slow](https://mochatrade.com/learn/us-market-structure/how-the-fed-moves-markets), and it has come before most US recessions, though the lag runs from months to years and [the growth data decides the timing](https://mochatrade.com/learn).

## Related terms

- Yield curve: https://mochatrade.com/learn/glossary/yield-curve
- 10-year Treasury yield: https://mochatrade.com/learn/glossary/10-year-treasury-yield
- 2-year Treasury yield: https://mochatrade.com/learn/glossary/2-year-treasury-yield
- Real yield: https://mochatrade.com/learn/glossary/real-yield
- Dot plot: https://mochatrade.com/learn/glossary/dot-plot
- Beta: https://mochatrade.com/learn/glossary/beta