NEW YORK, Dec. 27 (UPI) -- Economists are debating the significance of yields on short-term U.S. government notes surpassing yields on longer-term U.S. notes.
Typically the yield on notes with a longer maturation is higher than yields on shorter maturation to compensate investors for the longer time horizon and resulting greater risk.
But Tuesday the 2-year Treasury note yielded 4.373 percent, above the 10-year Treasury note yield of 4.372 percent to create what is called an "inverted yield curve."
Many analysts note that such inversions are reliable indicators of recession. Each of the last four recessions has been preceded by an inverted yield curve.
However, some notable figures -- like Federal Reserve Chairman Alan Greenspan -- have been downplaying the economic significance of that financial phenomenon.
