What is a 'Yield Curve'
A yield curve is a line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the threemonth, twoyear, fiveyear and 30year U.S. Treasury debt. This yield curve is used as a benchmark for other debt in the market, such as mortgage rates or bank lending rates. The curve is also used to predict changes in economic output and growth.
BREAKING DOWN 'Yield Curve'
The shape of the yield curve is closely scrutinized because it helps to give an idea of future interest rate change and economic activity. There are three main types of yield curve shapes: normal, inverted and flat (or humped). A normal yield curve (pictured here) is one in which longer maturity bonds have a higher yield compared to shorterterm bonds due to the risks associated with time. An inverted yield curve is one in which the shorterterm yields are higher than the longerterm yields, which can be a sign of upcoming recession. A flat (or humped) yield curve is one in which the shorter and longerterm yields are very close to each other, which is also a predictor of an economic transition. The slope of the yield curve is also seen as important: the greater the slope, the greater the gap between short and longterm rates.

Normal Yield Curve
A yield curve in which shortterm debt instruments have a lower ... 
Inverted Yield Curve
An interest rate environment in which longterm debt instruments ... 
Term Structure Of Interest Rates
The relationship between interest rates or bond yields and different ... 
Yield Elbow
The point on the yield curve indicating the year in which the ... 
Flat Yield Curve
A yield curve in which there is little difference between shortterm ... 
Riding the Yield Curve
A trading strategy that is based upon the yield curve and used ...

Investing
Trade Bond ETFs Using Yield Curves
Different types of yield curves provide important insights for trading bondbased securities. 
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. 
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
Advanced Bond Concepts: Term Structure of Interest Rates
The term structure of interest rates, also known as the yield curve, is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates ... 
Investing
The Impact Of An Inverted Yield Curve
Find out what happens when shortterm interest rates exceed longterm rates. 
Investing
What’s the US Yield Curve Signaling?
In recent weeks, the difference in yields between 10year and 2year U.S. Treasuries has hit post financial crisis lows, as evident in the chart below. 
Managing Wealth
How Bond Market Pricing Works
Learn the basic rules that govern how bond prices are determined. 
Markets
Understanding Interest Rates Inflation And The Bond Market
Interest rates, bond yields and inflation expectations are all correlated. 
Markets
Why the 10Year US Treasury Rates Are Crucial
10year treasury bond yields are important indicators of the economy as a whole.

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