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Yield curve

A line plotting the interest rate, or yield, on bonds of the same quality across different maturities.

The yield curve shows how yields change with time to maturity, usually for government bonds. Its shape, upward sloping, flat or inverted, reflects expectations for rates and growth.

It is a key reference for pricing, for funding decisions and for measuring interest rate risk, and an inverted curve is a closely watched recession signal.

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