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


Accounting | Banking | Bonds | Brokers | Economy | Futures | Mutual Funds | Options | Real Estate | Retirement | Stocks | Taxes | Technical Analysis
Home | Term of the Day | Suggest a Term | Chart of the Day | Dogs of the Dow
©2004-2016 Investor Glossary - All rights reserved - Terms of Use