Riding the Yield Curve

DEFINITION of 'Riding the Yield Curve'

A trading strategy that is based upon the yield curve and used for interest rate futures. Investors hope to achieve capital gains by employing this strategy.

BREAKING DOWN 'Riding the Yield Curve'

Traders riding the yield curve buy long term bonds with the hopes of making a profit as the yields fall with the declining maturity of the bonds.

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