Yield curve inversion: What next?

The party may not be over yet, but the markets globally are entering a dangerous phase

Over the last couple of weeks there has been much news chatter and gnashing of teeth over yield curve inversions in the US bond markets. Towards the end of March, various curves started inverting and then for a few days in April the all-important 10-year and 2-year curve also inverted. While this yield curve is now once again in positive territory, at just 19 basis points it can invert at any time.

Why is the yield curve important and what signals does it send? Why have global investment banks been falling over themselves producing research on inversions and its consequences? How