It’s time to submit inverted — or negative — yield curves to a reality check. That’s because the yield curve appears to be close to inverting, and an inverted yield curve is widely considered to indicate an imminent economic recession. So you will be reading more and more about them in coming weeks. The yield curve, of course, is the difference between Treasury yields of longer and short maturities. One widely-used yield curve, which is what is plotted in the accompanying chart, is the difference between the yields on the 10-year TMUBMUSD10Y, +0.36% and the two-year Treasury. It currently stands at 0.45%. As you can see from the chart, below, it’s been declining more or less steadily since its 2.66% reading at the end of 2013. via