Yield Curve

Market & Macro

The yield curve is a line that plots yields of bonds having equal credit quality but differing maturity dates. The most commonly referenced is the U.S. Treasury yield curve, plotting 3-month, 2-year, 5-year, 10-year, and 30-year Treasury rates.

The shape of the yield curve reveals economic expectations. An upward slope is healthy; an inverted curve (short rates above long rates) has preceded every U.S. recession since 1955.