Bond- Bonds are an instrument through which governments (and also corporations) raise money from people.

Yield Curve- yield curve is the graphical representation of yields from bonds (with an equal credit rating) over different time horizons.

• inversion of the bond yield curve has become strong predictor of recessions. Of course, for it to be taken seriously, such an inversion has to last for several months.
• such inversion is happening repeatedly in the US, suggesting to many that a recession is in the offing. The Fed has been raising short-term interest rates, which further bumps up the short end of the yield curve while dampening economic activity.