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Yield Curve • Definition • Bullshit Free Dictionary

Yield Curve

/noun/

A chart that shows the relationship between interest rates and the time it takes for bonds to mature. Normally, short-term rates are lower than long-term ones (makes sense, right?), but when it flips, it’s a red flag for the economy. Basically, it’s a financial mood ring—telling you whether things are smooth sailing or about to go off the rails.

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