Yield curve

A graph that displays the yields of bonds with different maturities, usually plotted on the vertical axis against time to maturity on the horizontal axis. The yield curve generally slopes upward, with longer-term bonds yielding more than shorter-term bonds, due to the time value of money. However, an inverted yield curve occurs when shorter-term bonds have a higher yield than longer-term bonds, which may signal a potential economic downturn or recession.