Yield curves are used as a benchmark to compare different debt securities in the market.
What is a yield curve?
A yield curve is a graphical representation of the relationship between bond yields and maturity dates. It plots the yields of a group of bonds with similar credit quality but varying maturities to show how yields change as the maturity of the bonds increase.
Where can I find yield curve rates?
Yield curve rates are usually available at Treasury's interest rate websites by 6:00 p.m. ET each trading day.
Yield Curve Shows Relationship Between Interest Rates & Bond Yields
The yield curve is a graph that shows the relationship between different interest rates and the yields of various bonds. It is plotted with the y-axis showing the yields of different types of securities, and it slopes upwards from the bottom left to the right. This means that as interest rates change, the yield curve shifts.
Yield Curve Risk
Yield curve risk is the risk that a change in interest rates will have an impact on securities with fixed interest rates. This is because when interest rates increase, the yield on bonds of shorter maturities increases more than that of bonds of longer maturities.
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