Yield curve
A line showing yields across maturities for bonds of similar credit quality.
Plain languagePractical exampleConnected reading
01
What is it?
A line showing yields across maturities for bonds of similar credit quality.
02
Why does it matter?
It reflects market pricing of growth, inflation, policy and maturity risk.
03
How should it be read?
Track the level and movement of the full curve, not only its slope.
04
Common mistake
Treating an inverted curve as a precisely timed recession forecast.
A simple example
When the two-year yield rises above the ten-year yield, that segment is inverted.