The Yield Curve–Why You’ll Need it
Alan Williams 
Imagine if it was possible to predict when the next recession is going to happen and use this information to your advantage when investing in bonds.
The yield curve, though not a 100 percent accurate tool, can help determine this with a reasonable level of reliability.
But what is the yield curve? This is a line graph. On it shows the different types of interest rates from Treasury bonds and other types of bonds. The yield curve also shows their different maturity dates. The slope of the graph can tell you IF the next drop-in economy is likely to happen.
There are many different types of yield curves. The main ones include:
·The flat yield curve
·Normal yield curve
·Inverted yield curve
·Steep yield curve