Education

The Yield Curve

In finance, a “yield” is the overall rate of return on a particular investment. A yield curve is a line that depicts the rise or fall in a bond’s yields for increasing contract lengths (maturities).

The yield curve most commonly referenced is the U.S. Treasury yield curve. Because U.S. Treasury bonds have traditionally been viewed as a risk-free investment, their yield curve represents (to many) the absolute minimal rate for holding debt over a given period.