OPEN-SOURCE SCRIPT

Average Yield Inversion

Updated
Description:
This script calculates and visualizes the average yield curve spread to identify whether the yield curve is inverted or normal. It takes into account short-term yields (1M, 3M, 6M, 2Y) and long-term yields (10Y, 30Y).

  • Positive values: The curve is normal, indicating long-term yields are higher than short-term yields. This often reflects economic growth expectations.
  • Negative values: The curve is inverted, meaning short-term yields are higher than long-term yields, a potential signal of economic slowdown or recession.


Key Features:
  • Calculates the average spread between long-term and short-term yields.
  • Displays a clear graph with a zero-line reference for quick interpretation.
  • Useful for tracking macroeconomic trends and potential market turning points.


This tool is perfect for investors, analysts, and economists who need to monitor yield curve dynamics at a glance.
Release Notes
Added red color for inversion and green for non inversion
Release Notes
Update: removed Chart to show the indicator only
Release Notes
Update: added symbol and chart for comparison
Release Notes
Update: added title
Breadth IndicatorsOscillatorssentiment

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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