Yield Curve Definition

A yield curve is a line plotting interest rates of bonds with equal credit quality but different maturities.

What is a Yield Curve?

A normal yield curve slopes upward, with longer-term bonds offering higher yields than shorter-term ones.

Changes in the shape of the yield curve, such as flattening or inversion, are closely watched as economic indicators.

Plotting the yields of 2-year, 5-year, and 10-year government bonds together produces a yield curve.

Year-to-date refers to the period beginning on the first day of the current calendar year up to the present date.

Yield is the income generated by an investment, typically expressed as a percentage of its price or original investment.