Definition

A graph showing the relationship between interest rates and the maturity of debt, often used to predict economic trends.

What to consider

  • Study the yield curve as an indicator of future interest rate trends.
  • Consider its implications for economic growth and recession risks.
  • Use it as one tool among many when making investment decisions.

Real world scenarios

  • Investors analyzed the yield curve, noting that an upward sloping curve often signaled expectations of future economic growth.

Related terms

Investments & Retirement