I just wrote down what came up in my thoughts but I don't know how to make this clean and organize it. help me! hope we can check my grammar as well. + also you can get rid of sentences if you need. I want it to be neat and clean

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An inverted yield curve is an upward-sloping yield curve that indicates generally cheaper short-term borrowing costs than long-term borrowing costs

Inverse yield curve occurs when long term bond will have lower yield than short term bond but both bonds should have same credit ratings.

suppose a 1-year bond and 10-year bond has rating BBB. The yield on 1-year bond is 10% and yield on 10-year bond has 8% yield

In this case you can observe that the 1-year (short term) bond has higher yield than 10 year (long term bond).

this is when inverse yield curve occurs.

This is a situation where inverted curve occurs. Financial analyst and economist use this data to draw the curve

This curve is very rare but very important.

it is an important indicator of recession

One of the most popular methods of measuring the yield curve is to use the spread between the yields of 10-year bond and 2-year bond to determine if the yield curve is inverted.

we know that higher returns come with higher risk, so in the inverted yield curve situation the short-term bonds are more riskier because they have higher return than long term.

The bond price is inversely proportional to the yield of the bond

Suppose the yield of the bond is higher than the price of the bond will be lower.

In inverted yield curve we know that, short term bond will have higher yield and long-term bond will have lower yield.

In this case long term bond will have higher price than the short-term bond.

The inverted yield curve is related to the yield of the bond

The inverse yield curve is an indication of recession, therefore the international market will also slow down

The international rates will fall

inverted yield curve forms due to speculation of an economic downturn by investors which results in driving prices lower.

thus as a result, to attract and counter this speculation sometimes int. rates are raised causing an inverted yield. in summary, this occurs when investors feel or believe that the risk is not worth the reward.

in summary, this occurs when investors feel or believe that the risk is not worth the reward.