yield curve


yield curve
A curve on a graph in which the yield of fixed-interest securities is plotted against the length of time they have to run to maturity. The yield curve usually slopes upwards, indicating that investors expect to receive a premium for holding securities that have a long time to run. However, when there are expectations of changes in interest rate, the slope of the yield curve may change (see term structure of interest rates).

Big dictionary of business and management. 2014.