What term describes an economic market condition where short-term debt instruments carry higher yields than long-term debt securities of equal quality?

Explanation

• An Inverted Yield Curve occurs when short-term interest rates exceed long-term rates (downward-sloping yield curve).
• Historically, inverted yield curves serve as reliable leading indicators of upcoming macroeconomic recessions.
• A Normal Yield Curve slopes upward, reflecting term risk premium expectations for longer maturities.