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The graph earlier and almost any other yield curve's graph you see would look 'upward sloping' Upward Slope Yield Curve The reason is simple – longer the tenor, the riskier it is If you take a 2year bank loan, you would have to pay a lower rate of interest than a 5year loan, which would be lesser than that of a 10year loanBackground The yield curve—which measures the spread between the yields on short and longterm maturity bonds—is often used to predict recessions Description We use past values of the slope of the yield curve and GDP growth to provide predictions of future GDP growth and the probability that the economy will fall into a recession overInterpretation The charts above display the spreads between longterm and shortterm US Government Bond Yields The flags mark the beginning of a recession according to Wikipedia A negative spread indicates an inverted yield curveIn such a scenario shortterm interest rates are higher than longterm rates, which is often considered