Treasury yield curve may be back to normal but U.S. economy is not

NEW YORK (Reuters) - A closely watched part of the U.S. bond market that is widely viewed as a recession indicator has recently stopped flashing red. But investors and economists say the economy is still not in the clear. The so-called "inverted yield curve," in which yields on short-term bonds are higher than those on long-term bonds, reverted back to normal on October 11. The shift could be interpreted as a sign that investors are feeling more optimistic about the economy. But there are also..