Yield Curve

A yield curve is a graph that shows the relationship between interest rates (yields) and the time until a bond matures. Typically, it plots government bonds of different durations, from short-term to long-term. The shape of the curve provides insights about the economy: a normal upward-sloping curve suggests healthy growth, while an inverted curve can signal upcoming recession. Investors and policymakers use it to assess economic outlooks and make informed decisions regarding borrowing, investing, or managing risk.