Normally lenders demand more to lend for ten years than for two, so long yields sit above short ones and the curve slopes upwards. FinVolio measures it as the 10-year yield minus the 2-year.
An inverted curve means the market expects short-term rates to fall in future, usually because it expects the central bank to cut in response to a slowdown.
Why it matters
An inverted US curve has preceded most US recessions since the 1960s, typically by 6 to 24 months. It is not a perfect signal: timing varies widely and there have been false alarms. Banks also borrow short and lend long, so an inverted curve squeezes their margins and can tighten lending.
See the data: US yield curve.
General information, not advice.