Days yield curve was inverted before recession 1978-2022

Prior to the 2020 recession, the yield curve was only inverted for days, which was much shorter than the average days preceding the previous five U.S. recessions. For instance, the yield curve was inverted for days between the inversion in January 2006 and the start of the recession. A yield curve inversion refers to the event where short-term Treasury bonds, such as or month bonds, have higher yields than longer term bonds, such as or year bonds. This is unusual, because long-term investments typically have higher yields than short-term ones in order to reward investors for taking on the extra risk of longer term investments. Monthly updates on the Treasury yield curve can be seen here.