yield curve
Bond maturity plot
A yield curve is a graph plotting interest rates of bonds with the same credit quality but different maturity dates.
Normally the curve slopes upward—longer-term bonds pay higher rates to compensate for time risk.
An inverted yield curve, where short-term rates exceed long-term ones, often signals recession expectations: The yield curve inverted six months before the downturn.
Reversal of position
- steepeningGrowing more sharply angled
- flatteningReducing to evenness
- slopeAngled terrain or steepness
- flatLacking vertical variation
steep · normal · humped · butterfly · belly · twist · pivot · kink
Stored organizational funds
- maturityFull growth achieved
- durationLength of existence
- couponCertificate for reduced price
- spreadTo distribute widely
benchmark · sovereign debt · gilt · bund · fixed income · zero-coupon
Prolonged economic decline
- expansionIncrease in scope
- inflationSustained price level increase
- deflationSustained decrease in prices
- GDPNational output abbreviation
unemployment · economic cycle · business cycle · stagflation · growth · contraction · economic indicator · forecasting
Central bank economic controls
- fiscal policyState spending and taxation
- central bankNational currency management institution
- federal fundsMoney controlled by national government
- quantitative easingAsset purchases to boost economy
tightening · accommodation · Fed · rate cut
inversion
Reversal of position
- steepeningGrowing more sharply angled
- flatteningReducing to evenness
- slopeAngled terrain or steepness
flat · steep · normal · humped · butterfly · belly · twist · pivot · kink · carry
treasury
Stored organizational funds
spread · benchmark · sovereign debt · gilt · bund · fixed income · zero-coupon
recession
Prolonged economic decline
- expansionIncrease in scope
- inflationSustained price level increase
- deflationSustained decrease in prices
GDP · unemployment · economic cycle · business cycle · stagflation · growth · contraction · economic indicator · forecasting · leading indicator
monetary policy
Central bank economic controls
- fiscal policyState spending and taxation
- central bankNational currency management institution
- federal fundsMoney controlled by national government
quantitative easing · tightening · accommodation · Fed · rate cut
market segmentation
Splitting audiences by shared traits
- risk premiumExtra yield for uncertainty
arbitrage
Exploiting price discrepancies
yield, curve, curved, curvy, yielding, curves, curving, unyielding, yielded