Our research shows that it is not a single risk - free rate that drives asset pricing, but rather the entire term structure of interest rates (also referred to as the shape of the yield curve; we use these terms interchangeably). (ashworthpartners.com)
(The curves in question plot market prices for various contracts at different maturities — cf. term structure of interest rates) «In broad terms, backwardation reflects the majority market view that spot prices will move down, and contango that they will move up. (en.wikipedia.org)
We look to identify fixed income issues that trade for less than we believe them to be worth, and we attempt to increase (or decrease) our fixed income portfolio weight when the term structure of interest rates is itself attractive (or unattractive). (oakmark.com)