c instructions plural: an outline or manual of technical procedure : directions d: a code that tells a computer to perform a particular operation 2: the action, practice, or profession of teaching
The yield curve describes the yields for Treasury bills, notes and bonds. It's called a curve because, if it were plotted on a graph, the yields would normally slope up. That's because Treasury bills, which are of short duration, don't usually pay as high a yield as the notes and even longer-term bonds. Why?
The higher yields on longer term maturity securities also means that the short term rates are likely to increase in the future as the growth in the economy would lead to higher inflation rates. Other Shapes of the Yield Curve. 1  Inverted Yield Curve: This occurs when short term rates are greater than the long term rates.