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Yield curve

Yields across maturities

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Macro & central banks

Short definition

The set of government yields across maturities. Normally upward-sloping; its inversion, short rates above long rates, preceded each of the last eight US recessions. Its slope informs as much as its level.

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Knowledge map

Intuition

The curve separates the level of rates, the slope and the shape. It ties together monetary policy, expected growth and the price of time.

Formula

10-2 slope = 10-year yield - 2-year yield

Why it matters now

A re-steepening curve can signal the return of duration risk rather than simple monetary easing.

Related analyses

Related guides

Related datasets

Signals using it

  • MethodologyDebt, interest burden, current stress and structural vulnerability.
  • Risk DiffRecent change in risk and source freshness.
  • Black Box RecorderHashed frames to replay a point-in-time state.

Primary sources