The yield curve is used as a leading indicator and is commonly mentioned in the financial media during times of potential recession.

The yield curve is used as a benchmark for debt in the bond market, most commonly correlating with bank lending and mortgage rates.

It is also used to predict any upcoming changes in GDP in which the three-month, two-year, five-year, 10-year and 30-year U.S. Treasuries are compared.

The yield curve can either be upward sloping, downward-sloping or flat and each of these “slopes” usually correlates directly with the state of the economy.