Understanding the Yield Curve

This lecture delves into the concept of the yield curve, which is a graphical representation of US government bond yields of different maturities. It explains how the shape of the yield curve can indicate future economic conditions, such as inflation and interest rates. By analyzing the relationship between short- and long-term Treasury yields, investors can gain insights into the current and future state of the economy. The lecture also explores the implications of an inverted yield curve and its historical significance as a potential indicator of an upcoming recession.