Investor Glossary-flat yield curveInvestor Glossary-flat yield curveInvestor Glossary-flat yield curveInvestor Glossary-flat yield curveInsightful stock market charts - Click here
investor
Categories    # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z

Flat Yield Curve

The HTML to link to this page
 

A flat yield curve has a small spread between short and long-term rates. The flat yield curve implies that the long-term rate is higher. If the short-term rate is higher, the yield curve is called an inverted yield curve rather than a flat yield curve. An arbitrary definition of a flat yield curve is a spread of 100 basis points between the short-term and long-term rates. In contrast to the flat yield curve, the normal yield curve is steeper. A flat yield curve may be a transition to an inverted yield curve. The inverted yield curve is of far greater interest, as since the 1960s it has been an almost perfectly reliable predictor of a US economic slowdown. Accordingly, speculation about a possible recession tends to be highest among bond traders during a flat yield curve.



Rate this flat yield curve definition...

Learn about investing with the Investor Glossary Term of the Day


Click here for insightful stock market charts. Where is the market headed? The answer may surprise you. Find out
with the exclusive & Barron's recommended charts of Chart of the Day.


Popular Terms: balance sheet, Zero Cost Collar, LIBOR, implied volatility, wholly-owned subsidiary, inflation, per diem, Key Rate Duration, open position, limit order, 144a, ex-dividend, covered put, EBITDA, option premium, retained earnings, annual return, quality assurance, diluted share, labor relations, ex-dividend date, 401a, average price per share, deferred revenue, 1035 exchange, risk management, in escrow, command economy, required rate of return, liquidity ratio, minority interest, cancelled check, current ratio, reverse mortgage, FTSE, 1031 exchange, real GDP, FICO score, stock split, irrevocable trust, margin rate, APR, VIX, phantom income, stock market close, deferred tax, dividends payable, debt service coverage, class C shares


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Investor Glossary | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2015 Investor Glossary - All rights reserved - Terms of Use