All > Business > Finance > Personal Finance
A yield curve shows the relationship between the yields on short-term and long-term bonds of the same investment quality.
Since long-term rates are characteristically higher than short-term rates, a yield curve that confirms that expectation is described as positive. In contrast, a negative yield curve occurs when short-term rates are higher.
A flat or level yield curve occurs when the rates are substantially the same.Yahoo Finance - Cite This Source - This Definition
Also listed in:
- All > Business > Finance > Investment