Yield Curve Term category: Bonds, Economics In 10 words or less: A graphical representation of the yields for various maturities.
Definition: It's a graphical representation of the yields on bonds with various maturities. It's gradually sloping upwards.
More in depth: The idea is that bonds with longer maturities pay higher interest rates. When bonds with shorter maturities pay higher interest rates, the curve is sloping downward. This is called an "inverted yield curve." This isn't a very common occurrence.
An example:
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