Yield Curve

Yield curve is a line that plots the interest rates, at a set time, of bonds possessing equal credit excellent, but differing maturity dates. The usually reported yield curve compares the three-month, two-year, five-year and 30-year U.S. Treasury debt. This yield curve is utilized as a benchmark for other debt available in the market, such as mortgage loan rates. The curve can be used to anticipate changes in economical output and expansion. The shape of the yield curve suggests the cumulative priorities of most lenders relative into a particular borrower.