Yield curve
Also called: inverted yield curve, term structure of interest rates
A plot of the yields of similar bonds, usually government bonds, across different maturities.
It normally slopes upward because of expectations about future rates and a premium for lending longer. An inverted curve, with short yields above long ones, often reflects expectations that rates will fall. Inversions have come before many recessions in some economies, but with widely varying delays and some false signals.
Learn more in these lessons
- The yield curveWhat is the yield curve, and what can it tell you about the economy?
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