Yield Curve

Market Sensitivity: Low to medium.

What Is It: Yields on Treasury securities from short to long term maturities.

Web Addresses: www.stockcharts.com/charts/YieldCurve.htmlwww.bloomberg.com/markets/rates/index.html

Frequency: Always available.

Source: Treasury markets.

Why Is It Important

When it comes to predicting the future course of the economy, only one indicator stands above all others in terms of accuracy: the yield curve. No other measurement has demonstrated as much success in warning of upcoming turning points in business activity. The yield curve is a collection of yields plotted on a graph that covers the entire spectrum of maturities on U.S. Treasury securities. What distinguishes the yield curve from all other economic ...

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