Yield curve inverts in the US and flattens in India, hinting at slowdown

Hints at possibility of recession or a big decline in economic growth

As investors and the bond market brace for a sharp hike in policy rate by central banks to fight inflation, the yield curve has inverted in the US. It has begun to flatten in India, hinting at the possibility of recession or a big decline in economic growth globally and in the domestic economy.

Yield curve inverts when short-term yields are higher than long-term yields. In the US, the yield on short-maturity bonds, such as three- and five-year government bonds, is now higher than the yield on long-tenure paper, such as 10- and 30-year bonds.

The yield on three-year US