Global financial markets turned fairly volatile this week, owing to the fear that the US economy might slip into a recession.

Behind this global scare was the inverted yield curve in the US. Inversion of yield curve means that yields on longer duration bonds go below the short term bonds. Normally, the return for holding a longer-term bond is higher and the curve is upward sloping.

Moneycontrol's Jerome Anthony does 3 Point Analysis on what the inverted yield curve means for India.