A “normal” yield curve is one in which long-term rates are above short-term rates, which looks like this:
And an inverted yield curve is one in which short-term rates are above long-term rates, like this:« Back to Glossary
TradeSmith is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual or group of individuals. This TradeStops Blog is not intended to provide tax, legal or investment advice, and nothing on the TradeStops Blog should be construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any security. Trading in such securities can result in immediate and substantial losses of the capital invested. Please refer to the terms and conditions.