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.
Next Up
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.
RELATED TERMS

Normal Yield Curve
A yield curve in which shortterm debt instruments have a lower ... 
Yield Curve
A line that plots the interest rates, at a set point in time, ... 
Term Structure Of Interest Rates
The relationship between interest rates or bond yields and different ... 
Flat Yield Curve
A yield curve in which there is little difference between shortterm ... 
Yield Elbow
The point on the yield curve indicating the year in which the ... 
Yield Curve Risk
The risk of experiencing an adverse shift in market interest ...
Related Articles

Investing
Trade Bond ETFs Using Yield Curves
Different types of yield curves provide important insights for trading bondbased securities. 
Markets
Understanding Term Structure of Interest Rates
The term structure of interest rates is a common method of valuing bonds. 
Markets
Understanding The Treasury Yield Curve Rates
Treasury yield curves are a leading indicator for the future state of the economy and interest rates. 
Markets
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. 
Markets
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. 
Markets
Bond Yield Curve Holds Predictive Powers
This measure can shed light on future economic activity, inflation levels and interest 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. 
Managing Wealth
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. 
Investing
Yield Curve
Learn more about how this curve is used to predict changes in economic output and growth.
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 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 >> 
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 >> 
Where on the Internet can I find yield curves over various periods?
Find out where to locate reliable yield curve information on the Internet, including the U.S. Department of the Treasury ... Read Answer >>