<Definition> A state of the forward curve in which the near-month contract (or spot price) trades below the deferred-month contract. In financial and commodity futures markets, this tends to form when storage costs and financing costs — the cost of carry — exceed the convenience yield — the value, unique to holding the physical commodity, of being able to use it immediately when needed. It is a forward curve state that reflects the factors making up the cost of carry: inventory, storage costs, financing costs, and the convenience yield of holding the physical commodity.