Money & Banking
Yield curve
The yield curve plots interest rates on government bonds of the same credit quality across different maturities, from short-term bills to 30-year bonds. It normally slopes upward because longer-term lending carries more risk; when short-term yields exceed long-term ones — an "inverted" curve — it has historically preceded recessions in several major economies.
Why it matters
An inverting curve is one of the most closely watched signals alongside this platform's policy-rate and GDP-growth series.
Also known as: term structure of interest rates