REUTERS/Brendan McDermid
- The inverted yield curve is a closely followed recession indicator, but it isn't the only one to watch.
- Prior inversions have preceded a recession by as much as two years, making it difficult to use as an accurate gauge.
- It's the re-steepening of the yield curve, or de-inversion, that's more closely followed by a recession.
Investors love to point to an inverted yield curve as a surefire signal that the economy is about to hit a recession.