Yield Curve is a snapshot of the investor's view of the markets. It shows how the investor's expect markets to behave in the short-term as well as the long-term. Usually, the short-term rates are lesser than the long-term rates as the investors want to be compensated more for risk of giving their money for longer duration. However, sometimes, the yield curve "inverts". In other words, the short-term yields are higher than longer-term yields. Historically, a yield curve inversion has always preceded a "recession".