Polymorphously Inverse January 4, 2006 Dear Investor: The yield curve inverted recently, with the 2-yr rate rising a basis point or two above the 10-yr. Often, a yield inversion predicts recession. Clearly, something is up: If people are willing to lend money for the same amount for both two years and ten years, they certainly don’t expect inflation. They probably expect deflation, or at least disinflation—a slowdown in the rate of inflation...