Plotting interest rates against maturities creating a term structure. In normal conditions it is a upward curve. This causes shortterm funds to cost less to invest in. The shape is influenced by money, liquidity, and derivatives. Refer to expectations the

More On This Topic

Link to This Definition
Did you find this definition of YIELD CURVE helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary