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01
Definitions #
A graph showing interest rates for bonds of different maturities, usually from short-term to long-term.
Technical A graphical representation of the term structure of interest rates, plotting yields of comparable bonds against their time to maturity, used to infer market expectations of future rates and economic growth.
Example An inverted yield curve has historically preceded economic recessions.
02
Etymology #
From yield (return on investment) + curve (a line on a graph).
03
Collocations #
- inverted yield curve 收益率曲线倒挂（短期利率高于长期）
- steepening yield curve 收益率曲线陡峭化（长短期利差扩大）
- flat yield curve 收益率曲线平坦化
04
Real Business Examples #
- The yield curve flattened as the Federal Reserve raised short-term rates while long-term inflation expectations remained anchored.
- Portfolio managers monitor the yield curve to adjust duration positioning.
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05
Register & Variants #
- Register: formal
- BrE/AmE: Global
06
Synonyms & Antonyms #
- Synonyms: term structure of interest rates
07
Common Errors #
- Confusing yield curve slope with credit spread The yield curve shows government bond yields; credit spread is the difference between corporate and government yields.
- Assuming an inverted curve guarantees a recession It is a leading indicator, but not a certainty; other factors matter.
08
Confusable Terms #
- Term structure vs Yield Curve
- Term structure is the data used to plot the yield curve; the curve is the visual representation.
09
Frequently Asked Questions
What does an inverted yield curve mean??
It suggests markets expect lower future short-term rates, often a sign of looming recession.
Why is the yield curve important for banks??
Banks borrow short and lend long; a steep curve boosts net interest margin, while an inverted one squeezes profits.
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