Inverted Yield Curve
Partial inversion occurs when only some of the short-term Treasuries (five or 10 years) have higher yields than the 30-year Treasuries do. An inverted yield curve is sometimes referred to as a "negative yield curve".
Historically, inversions of the yield curve have preceded many of the U.S. recessions. Due to this historical correlation, the yield curve is often seen as an accurate forecast of the turning points of the business cycle. A recent example is when the U.S. Treasury yield curve inverted in 2000 just before the U.S. equity markets collapsed. An inverse yield curve predicts lower interest rates in the future as longer-term bonds are being demanded, sending the yields down.
Investment dictionary. Academic. 2012.
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inverted yield curve — See yield curve slope. American Banker Glossary When short term interest rates are higher than long term rates. Antithesis of positive yield curve. Bloomberg Financial Dictionary * * * A chart pattern that shows yields on short term securities … Financial and business terms
inverted yield curve — Fin a yield curve with lower interest rates for long term bonds than for short term bonds. See also yield curve … The ultimate business dictionary
yield curve slope — Yield curves also describe the amount of difference between short term and long term rates. A yield curve that depicts the customary situation of long term rates higher than short term rates is called an upward sloping or positively sloped yield… … Financial and business terms
Yield curve — This article is about yield curves as used in finance. For the term s use in physics, see Yield curve (physics). Not to be confused with Yield curve spread – see Z spread. The US dollar yield curve as of February 9, 2005. The curve has a typical… … Wikipedia
yield curve — A chart in which the yield level is plot on the vertical axis and the term to maturity of debt instruments of similar creditworthiness is plotted n the horizontal axis. The yield curve is positive when long term rates are higher than short term… … Financial and business terms
Yield Curve — A line that plots the interest rates, at a set point in time, of bonds having equal credit quality, but differing maturity dates. The most frequently reported yield curve compares the three month, two year, five year and 30 year U.S. Treasury… … Investment dictionary
Yield curve — The graphical depiction of the relationship between the yield on bonds of the same credit quality but different maturities. Related: Term structure of interest rates. Harvey (1991) finds that the inversions of the yield curve (short term rates… … Financial and business terms
yield curve — Fin a representation of relative interest rates of shortand long term bonds. It may be normal, flat, or inverted … The ultimate business dictionary
Normal Yield Curve — A chart illustrating that yields on long term securities are at higher rates than the rates on short term securities, to reflect the extra risk of holding them for a longer period. Also known as a positive yield curve. The opposite of an… … Financial and business terms
Humped Yield Curve — A relatively rare type of yield curve that results when the interest rates on medium term fixed income securities are higher than the rates of both long and short term instruments. Humped yield curves are also known as bell shaped curves. A… … Investment dictionary