btcapital

Upward sloping could be liquidity preference like now. If there was a huge demand for short term instruments for safety reasons but rates were expected to come down in the future you could still have an upward sloping curve.

As many investors have a preference to their given spot because of the rate that is given, the LPT states that the curve should be upward sloping as people need to be compensated for the excess time.

The current answer is decrease as with a flat curve implies that rates are coming down but demand is not enough to outpace the supply in the short term.