• About us
    • Who we are
    • Mission
  • Contacts
  • English
    • Português (Portuguese (Portugal))
    • Español (Spanish)
    • Français (French)
  • Login
Investorpolis
[xyz-ips snippet="Banners-Publicitarios"]
No Result
View All Result
No Result
View All Result
Investorpolis
No Result
View All Result
Home Tools Sites and apps

Yield curve

5 de September, 2023
in Sites and apps, Tools
Reading Time: 3 mins read
0 0
0
Yield curve
Share on FacebookShare on Twitter

A yield curve is a line that plots the yields, or interest rates, of bonds that have the same credit rating but different maturity dates.

In other words, yield curves plot the interest rates on bonds of equal credit and of different maturities.

The U.S. Treasury yield curve refers to a line chart that represents the yields on short-term Treasuries compared to yields on long-term Treasuries.

The chart shows the relationship between interest rates and maturities of U.S. Treasury fixed-income securities.

The Treasury yield curve is also called the maturity structure of interest rates.

The slope of the yield curve can predict future changes in interest rates and economic activity.

There are three main forms of yield curve, a normal upward sloping curve, an inverted downward curve, and a flat curve.

The normal curves point to economic expansion and the downward curves point to economic recession.

Yield curve rates are posted on the U.S. Treasury Department’s website each trading day.

A normal yield curve shows low yields for shorter-dated bonds and then increases for longer-dated bonds, tilting upward.

This curve indicates that longer-term bond yields continue to rise, responding to periods of economic expansion.

An inverted yield curve tilts downward, with short-term interest rates exceeding long-term rates.

This yield curve corresponds to periods of economic recession, in which investors expect yields on longer-dated bonds to tend to fall in the future.

In an economic downturn, investors looking for safe investments tend to buy longer-term bonds instead of short-term bonds, increasing the price of longer bonds and lowering their yield.

A flat yield curve reflects similar yields over all timeframes, implying an uncertain economic situation. Some intermediate maturities may have slightly higher yields, which causes a slight hump to appear along the flat curve. These bosses are usually for medium-term maturities, from six months to two years.

Investors can use the yield curve to make predictions about the economy to make investment decisions.

If the bond yield curve indicates an economic slowdown, investors can move investments to defensive assets that traditionally behave better during a recession.

If the yield curve becomes steep, it could signal future inflation. In this scenario, investors can avoid long-term bonds whose yield will erode as prices rise.

Access: https://home.treasury.gov/policy-issues/financing-the-government/interest-rate-statistics

Previous Post

OECD Composite Leading indicator

Next Post

The economic indicators most followed by the financial markets

Feria

Feria

Related Posts

Do global stocks outperform US treasury bills? Hendrik Bessembinder, Te-Feng Chen, Goeun Choi, K.C. John Wei
Publications

Do global stocks outperform US treasury bills? Hendrik Bessembinder, Te-Feng Chen, Goeun Choi, K.C. John Wei

21 de November, 2024
Do stocks outperform Treasury bills? updated by Wealth Creation in the U.S. Public Stock Markets 1926 to 2019, Hendrik Bessembinder
Publications

Do stocks outperform Treasury bills? updated by Wealth Creation in the U.S. Public Stock Markets 1926 to 2019, Hendrik Bessembinder

21 de November, 2024
ETFs on the S&P 500: Shooting the Messenger, S&P Dow Jones Indices, November 2022
Publications

ETFs on the S&P 500: Shooting the Messenger, S&P Dow Jones Indices, November 2022

12 de November, 2024
OECD Pensions Outlook 2022
Publications

OECD Pensions Outlook 2022

12 de November, 2024
“ESG Investing: Practices, Progress and Challenges”, OECD
Publications

“ESG Investing: Practices, Progress and Challenges”, OECD

12 de November, 2024
Earnings Insights, Reuters Factset
Publications

Earnings Insights, Reuters Factset

28 de October, 2024
Next Post
The economic indicators most followed by the financial markets

The economic indicators most followed by the financial markets

Leave a Reply

Your email address will not be published. Required fields are marked *

Trending

Effects of Trump’s Trade Tariffs on Financial Investments Series: P1 – Framework

Effects of Trump’s Trade Tariffs on Financial Investments Series: P1 – Framework

8 de May, 2025
Series Investments in the Artificial Intelligence Cycle: Part 2 – The main branches of AI

Series Investments in the Artificial Intelligence Cycle: Part 2 – The main branches of AI

29 de April, 2025
2Q25 Financial Markets Outlook: Zombieconomics, or the monumental cost of Trump’s astronomical reciprocal tariffs

2Q25 Financial Markets Outlook: Zombieconomics, or the monumental cost of Trump’s astronomical reciprocal tariffs

4 de April, 2025
Thematic Investments Series: Part 3. What are the main megatrends?

Thematic Investments Series: Part 3. What are the main megatrends?

28 de March, 2025
Investorpolis

We developed this blog because we believe that only a small learning effort is needed to make a big change in the decisions and results of our investments and financial assets.

Main categories

  • Investing Series Guide
  • Wealth and Investing
  • Retirement & Savings
  • Tools
  • More

Newsletter

Sign to our mailing list to receive updates direct to your inbox!

*We don’t spam

  • Privacy Policy
  • Cookie Policy
  • Contacts

© 2021 - Investorpolis / Powered by Delta Soluções

  • pt-pt Português
  • fr Français
  • es Español
  • en English
  • Home
  • Investing Series Guide
    • I. Goal Based Investing
    • II. Compounding & Inflation
    • III. Assets Risks & Returns
    • IV. Efficient Diversification
    • IX. Sustainable Investing and ESG
    • V. The Investor
    • VI. Assets and Investments
    • VII. Index Funds
    • VIII. Successful Investing
    • X. Kits and Tips
    • XI. Other Topics
  • Retirement & Savings
    • Retirement
    • Savings
  • Wealth and Investing
    • Investing
    • Wealth
  • Tools
    • Calculators
    • Publications
    • Sites and apps
  • More
    • Best of
    • Reviews
    • Snapshots
    • Others
  • About us
    • Who we are
    • Mission
  • Login
  • Cart

© 2021 - Investorpolis / Powered by Delta Soluções

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie configurationCookie PolicyAcceptReject
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Necessary
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
SAVE & ACCEPT

Add New Playlist

Are you sure want to unlock this post?
Unlock left : 0
Are you sure want to cancel subscription?