Yield Curves

What this video covers

• What a yield curve is: a plot of yields on same-credit-quality bonds across maturities, with the United States Treasury curve as the relevant benchmark for interest-rate futures
• Why a positive (normal) yield curve slopes upward, with long-term rates higher than short-term rates, and why this signals economic expansion
• The inverted (negative) yield curve, why short-term rates sit above long-term rates on a downward slope, and why this shape reliably warns of recession
• The classic exam trap of flipping the inverted curve in your head, and how to land on the correct short-term-vs-long-term rate comparison every time
• What a flat yield curve signals: roughly equal rates across maturities, market uncertainty, and transition between normal and inverted conditions
• The inverse relationship between interest rates and interest-rate futures prices, and why Treasury note and bond futures fall when rates rise
• The exact trader logic chain: from curve shape to rate expectation to futures price direction to bullish or bearish posture to long or short position