negative yield curve

negative yield curve definition - business

negative yield curve

An unusual relationship between bond yields and maturity lengths that results when interest rates on long-term bonds are lower than interest rates on short-term bonds. Negative refers to the downward slope of the curve that is drawn to depict this relationship. Also called inverted yield curve. Compare positive yield curve.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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