For Yield Curve we have terms and definitions in 4 topics. The topics are Finance, Frauds and Scams, Investing and Securities.

Yield Curve (Finance)

The graphic depiction of the relationship between the yield on bonds of the same credit quality but different maturities. Related: Term structure of interest rates. Harvey (1991) finds that the inversions of the yield curve (short-term rates greater than long term rates) have preceded the last five U.S. recessions. The yield curve can accurately forecast the turning points of the business cycle.

Yield Curve (Frauds and Scams)

Graph depicting the term structure of interest rates. It plots the yields of bonds of the same class (corporates, governments, etc.) and quality with maturities that range from the shortest to the longest term. The yields are plotted on the y-axis, and time to maturity on the x-axis. The curve will show whether short-term interest rates are higher or lower than long-term interest rates.
In general, the yield curve is positive. Investors usually receive a higher yield for the extra risk of tying up their money long term. However, if short-term rates are higher, the curve is considered to be a "negative (or inverted) yield curve". And, if a small variation exists between short-term and long-term rates, the curve is considered to be a "flat yield curve.” To make a sound judgment about the direction of interest rates, fixed income analysts and economists will carefully watch the yield curve.

Yield Curve (Investing)

Graph depicting the term structure of interest rates. It plots the yields of bonds of the same class (corporates, governments, etc.) and quality with maturities that range from the shortest to the longest term. The yields are plotted on the y-axis, and time to maturity on the x-axis. The curve will show whether short-term interest rates are higher or lower than long-term interest rates.

In general, the yield curve is positive. Investors usually receive a higher yield for the extra risk of tying up their money long term. However, if short-term rates are higher, the curve is considered to be a "negative (or inverted) yield curve". And, if a small variation exists between short-term and long-term rates, the curve is considered to be a "flat yield curve".

To make a sound judgment about the direction of interest rates, fixed income analysts and economists will carefully watch the yield curve.

See Also: Negative Yield Curve; Positive Yield Curve

Yield Curve (Securities)

A chart showing yields of bonds with various maturities. Short-term debt normally has a lower yield than long-term debt.

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