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.
 | | 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 three-month, two-year, five-year, 10-year and 30-year 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, and it is used to predict changes in economic output and growth. Yield curve rates are usually available at the Treasury's interest rate web sites by 6:00 PM ET each trading day. | | Breaking it Down: | | The shape of the yield curve gives an idea of future interest rate changes and... | | Read More » | | How can I create a yield curve in Excel? | | Yield curves indicate where future interest rates are headed and you can actually make one in excel. Find out more about this useful tool, what and how to create the one for U.S. Treasury bonds using time and yield to maturity using Microsoft Excel. | | Read More » | | | Curve Steepener Trade | | Curve steepener trade is a strategy that uses derivatives to benefit from escalating yield differences that occur as a result of increases in the yield curve between two Treasury bonds of different maturities. | | Read More » | | | Matrix Trading | | Matrix trading is a fixed-income strategy that seeks discrepancies in the yield curve, which an investor can capitalize upon by instituting a bond swap. | | Read More » | | | Yield Elbow | | A yield elbow is a point on the yield curve indicating the year in which the economy's highest interest rates occur. | | Read More » | | | Nominal Yield Spread | | The nominal yield spread is the difference between a Treasury security and the non-Treasury version of that same security. | | Read More » | | | | | | CONNECT WITH INVESTOPEDIA | | | | | | | |
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