Yield Curves

A yield curve is a graph that shows the relationship between the interest rates (yields) of bonds and their different expiration dates (maturities). Typically, it plots the yields of government bonds like Treasury securities across short-term to long-term periods. The shape of the curve provides insights into economic expectations: a normal upward slope suggests economic growth, an inverted curve may signal a recession, and a flat curve indicates uncertainty. Investors and policymakers analyze the yield curve to gauge future interest rates, economic health, and potential turning points in the economy.