When the yield curve is inverted, short term interest rates are higher than long term rates. This normally occurs when interest rates have been targeted to rise based on tightenting by the federal reserve board.
When interest rates are higher on the short term or an inverted bond curve is in place, many investors will polace their money in money market investment securities.
Yield curves can also fluctuate or be flat - where interest rates are fairly equal across several maturities on the curve.
When interest rates are higher on the short term or an inverted bond curve is in place, many investors will polace their money in money market investment securities.
Yield curves can also fluctuate or be flat - where interest rates are fairly equal across several maturities on the curve.
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