This is watched closely by investors because a change can be early warning of broader changes in the economy. When, for example, the yield curve starts to flatten, such that short and longer-term yields are similar, it can be a signal that a full inversion may occur. In the past, this has tended to coincide …
A yield curve is a graph that shows how yields on similar fixed income securities change.. It does this by plotting the yield on securities with different maturities and then connecting them using a line. Usually the resulting “curve” for say UK gilts slopes upwards from left to right – shorter dated bonds having lower …
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