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. ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌

| Term of the Day 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 p.m.ET each trading day. Read More » Related to "Yield Curve" Bond Yield Curve Holds Predictive Powers The bond yield curve measure can shed light on future economic activity, inflation levels, and interest rates. Read More » The Impact of an Inverted Yield Curve Understand how the relationship between short- and long-term interest rates contributes to an inverted yield curve – a noteworthy economic event. Read More » Understanding Treasury Yield And Interest Rates By understanding the factors that influence treasury yield and interest rates, you can learn to anticipate their movement and profit from it. Read More » Related Definitions Maturity Date The maturity date is the date when the principal amount of a note, draft or other debt instrument becomes due and is repaid to the investor. Read More » U.S. Treasury Created in 1798, the U.S. Treasury is the government (Cabinet) department responsible for issuing all Treasury bonds, notes and bills. Read More » Expansion Expansion is the phase of the business cycle when the economy moves to a peak surging employment levels, consumer confidence, and GDP. Read More » Recession A recession is a significant decline in activity across the economy lasting longer than a few months. Read More » CONNECT WITH INVESTOPEDIA Email sent to: mondemand.forex@blogger.com To update your newsletter preferences or unsubscribe, click here. 114 West 41st St, floor 8 New York NY 10036 © 2019, Investopedia, LLC, All Rights Reserved | Privacy Policy