The graphic 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 greater than long term rates) have preceded the last five US recessions. The yield curve can accurately forecast the turning points of the business cycle.
Nearby TermsYield burning Yield curb Yield curve Yield curve option-pricing models Yield curve strategies
Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University