Other resources


Tools for Personal Help and Self Growth

Tools for Personal Help and Self Growth

Inverted yield curve

• A downward-sloping yield curve that indicates generally cheaper long-term borrowing costs than short-term borrowing costs.

• A chart showing long-term debt instruments having lower yields than short-term debt instruments. Also known as a Negative Yield Curve. See also: Flat Yield Curve; Normal Yield Curve.

• Is the market condition whereby the near-term interest rates are higher than long-term interest rates. For example, the two year rate is greater than the ten year rate; or, the spot (overnight) rate is higher than the thirty year rate. This inversion may be induced or result from changes in monetary policy, foreign exchange movements, immediate liquidity needs within the financial system, constrictions in money/credit and other financial forces.

 Embedded terms in definition
 Debt instrument
Flat yield curve
Foreign exchange
Interest rate
Monetary policy
Negative yield curve
Normal yield curve
Yield curve
 Related Terms

<< Inverted market Invested capital >>

Getting Your Finances Ready for Your Golden Years: If you're seriously considering retirement, you also should be seriously thinking about how to ensure that your financial life is as comfortable and stress-free as possible. Here are a few tips. More...

You make the world a better place by making yourself a better person. - Scott Sorrell


Copyright 2011-2015 GVC. All rights reserved.