DEFINITION of 'Humped Yield Curve'
A relatively rare type of yield curve that results when the interest rates on mediumterm fixed income securities are higher than the rates of both long and shortterm instruments. Humped yield curves are also known as bellshaped curves.
Next Up
BREAKING DOWN 'Humped Yield Curve'
A market with a humped yield curve could see rates of bonds with maturities of one to five years trumping those with maturities of less than one year or more than five years. However, this type of yield curve does not happen very often. Although a humped yield curve is often an indicator of slowing economic growth it should not be confused with an inverted yield curve.
RELATED TERMS

Positive Butterfly
A nonparallel yield curve shift in which short and longterm ... 
Normal Yield Curve
A yield curve in which shortterm debt instruments have a lower ... 
Negative Butterfly
A nonparallel yield curve shift in which long and shortterm ... 
Term Structure Of Interest Rates
The relationship between interest rates or bond yields and different ... 
Yield Curve
A line that plots the interest rates, at a set point in time, ... 
Flat Yield Curve
A yield curve in which there is little difference between shortterm ...
Related Articles

Investing
Trade Bond ETFs Using Yield Curves
Different types of yield curves provide important insights for trading bondbased securities. 
Insights
Understanding The Treasury Yield Curve Rates
Treasury yield curves are a leading indicator for the future state of the economy and interest rates. 
Investing
Will an Inverted Yield Curve Happen Again?
Explore the causes of inverted yield curves, their frequency, their accuracy in forecasting recessions and whether this type of event can happen again. 
Investing
The Impact Of An Inverted Yield Curve
Find out what happens when shortterm interest rates exceed longterm rates. 
Investing
Understanding the Inverted Yield Curve
An inverted yield curve occurs during the rare times when shortterm interest rates are higher than longterm interest rates. 
Insights
U.S. Recession Without a Yield Curve Warning?
The inverted yield curve has correctly predicted past recessions in the U.S. economy. However, that prediction model may fail in the current scenario. 
Investing
Understanding Term Structure of Interest Rates
The term structure of interest rates is a common method of valuing bonds. 
Investing
Yield Curve
Learn more about how this curve is used to predict changes in economic output and growth. 
Investing
Bond Yield Curve Holds Predictive Powers
This measure can shed light on future economic activity, inflation levels and interest rates. 
Investing
Interest Rates And Your Bond Investments
By understanding the factors that influence interest rates, you can learn to anticipate their movement and profit from it.
RELATED FAQS

Why are the term structure of interest rates indicative of future interest rates?
Learn why economists believe the term structure for interest rates reflects investor expectations for future interest rates ... Read Answer >> 
How can the yield curve help me make investment decisions?
Learn about the yield curve, and discover why this chart is an important economic indicator. How do Treasury bond yields ... Read Answer >> 
What is the difference between term structure and a yield curve?
Understand the difference between the term structure of interest rates and a yield curve, if any. Learn what the yield curve ... Read Answer >> 
What does the yield curve actually predict?
Find out what an inverted yield curve represents, how it has performed as a leading indicator and why it appears to hold ... Read Answer >> 
What is the current yield curve and why is it important?
Understand what the current yield curve represents, and learn how market analysts commonly interpret various changes in the ... Read Answer >> 
What are the different formations of yield curves?
Find out more about the yield curve and yield curve formations, what yield curves measure and the three main types of yield ... Read Answer >>