Terms

Yield Curve

Yield Curve

A Yield Curve plots the difference (or spread) between two interest rates

More About Yield Curve

  • Typically plots the difference between a short-term and long-term bond
  • Comparing the 10-year Treasury to 2-year treasury is most common (10y-2y)
  • The 10y-27 has a good record of predicting economic slowdowns