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Yield Curve

What is Yield Curve?

The yield curve plots the interest rates, or yields, of bonds of the same quality at different maturities, most often US Treasuries from short to long terms.

Why it matters

It normally slopes upward, since longer loans pay more. When short-term yields are above long-term ones (an inverted curve), it has often preceded recessions, though the timing is unreliable.

Read the guide
How Interest Rates Affect Stocks and Bonds

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