A level yield curve results when the interest rate on short-term US Treasury issues is essentially the same as the rate on long-term Treasury bonds.
You create the curve by plotting a graph with rate on the vertical axis and maturity date on the horizontal axis and connecting the dots.
In most periods, the rate on long-term bonds is higher and the yield curve is positive because investors demand more for tying up their money for a longer period.
There are also times, when interest rates seems to be on the upswing, that the pattern is reversed and the yield curve is negative, or inverted.
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