Business and Personal Finance Dictionary

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• INVERTED YIELD CURVE
  
  Is the market condition whereby the near-term interest rates are higher than long-term interest rates. For example, the two year rate is greater than the ten year rate; or, the spot (overnight) rate is higher than the thirty year rate. This inversion may be induced or result from changes in monetary policy, foreign exchange movements, immediate liquidity needs within the financial system, constrictions in money/credit and other financial forces.
  
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