Can anyone explain explanation of 27
That is in why recession the yield curve would be upward sloping?
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The explanation is very sufficient. If you want more elaboration, you need to draw yield curve and visualize it.
Let’s assume the 5-year yield curve is flat say at 6%. ( I hope you’re sketching with the instructions).
Now, during recession, CBs follow an expansionary monetary policy and lowers interest rates. So, short term interest rates, say 1 year and 2 year rates come down to say 2% and 3%. The mid (3 year) and long term rates (above 3 years) will be less affected, so, say they come to 4%, 5% and 6%.
So, there you have an upward sloping yield curve.