Web Trader MT5
A yield curve places the yields of similar bonds with different maturity dates on one line. It gives traders and investors a quick view of how the market is pricing time.
A normal curve slopes upward because longer-term bonds usually offer higher yields. A flat curve shows little difference between maturities. An inverted curve appears when short-term yields rise above longer-term yields.
If a two-year government bond yields 5% while a ten-year bond yields 4%, the curve is inverted. That shape may reflect expectations of slower growth or lower interest rates later. Traders watch not only the shape of the curve, but also how quickly it is steepening, flattening, or shifting.
