Options & Bonds
What is Yield Curve?
A graph showing interest rates at different loan lengths
Full Explanation
The yield curve shows interest rates on bonds ranging from short-term (3 months) to long-term (30 years). Normally, longer bonds pay more. When it "inverts" (short-term higher than long-term), it's historically predicted recessions.
Pro Tip
An inverted yield curve has preceded every US recession in recent decades — one of the most watched economic signals.
Related Options & Bonds Terms
Track Real Stocks on Mr. Guy Invests
Free portfolio tracker, AI tutor, hedge fund tracker, everything explained in plain English.
Create Free AccountFree forever. No credit card needed.