Get ahead of the yield curve
Short-term U.S. Treasury bonds are one- to three-month notes while long term are the 10- and 30-year bonds. Short-term bonds normally pay a lower interest rates than long term. Watch, however, for an interest rate inversion, a sign that investors believe that long rates must go down relative to short-term bonds. Higher interest rates for short-term bonds have occurred before every recession since 1929.
