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4. If you see a downward term structure of interest rates from T-bills like the figure below today, what is the signal about future economy?

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4. If you see a downward term structure of interest rates from T-bills like the figure below today, what is the signal about future economy? Why? (For the figure below, the x axis indicates maturities for T-bills while the y axis means YTM of these T-bills.) Percent 6.50 6.25 6.00 5.75 5.50 5.25 3 6 1 23 5 10 30 Months Year Maturities

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