Sentences with phrase «normal yield curve»

That's a normal yield curve although it's a bit flat.

By market definition, a «normal yield curve» is when long rates are higher than short rates (line is above zero).

Longer T - Bills tend to have higher returns than shorter issues (something that is generally true of all debt securities and helps explain the shape of a normal yield curve).

With a normal yield curve, bond buyers essentially demand a higher rate of interest in order to lend money for 30 years than they will to loan money for 30 days since they will be locking up their money for a longer period of time.

And when this is the case, it's called a normal yield curve.

In general terms, yields increase in line with maturity, giving rise to an upward - sloping yield curve or a normal yield curve.

As we can see by following the orange line, a normal yield curve starts with low yields for lower maturity bonds and then increases for bonds with higher maturity.

As we can see by following the blue line, a steep yield curve is shaped like a normal yield curve, except with two major differences.

The shape of the inverted yield curve, shown on the yellow line, is opposite to that of a normal yield curve — sloping downward.

When these points are connected on a graph, they exhibit a shape of a normal yield curve.

A normal yield curve slopes upwards; however, once bonds reach the highest maturities, the yield flattens and remains consistent.

A person might purchase longer term bonds as a retirement investment, with a more favorable rate, assuming the economy is experiencing a normal yield curve during this time.

The slope of the cables of San Francisco's Bay Bridge looks a lot like a normal yield curve, as shown in this video.

Normal Yield Curve — Yield curves are usually upward sloping, meaning the longer the maturity, the higher the return (yield).

A normal yield curve is upward sloping depicting the fact that short - term money usually has a lower yield than longer - term funds.

The strategy was initially great as short - term rates fell and the normal yield curve was maintained.

When the economy is transitioning from expansion to slower development and even recession, yields on longer - maturity bonds tend to fall and yields on shorter - term securities likely rise, inverting a normal yield curve into a flat yield curve.

A normal yield curve is one in which longer maturity bonds have a higher yield compared to shorter - term bonds due to the risks associated with time.

The increasing temporary demand for shorter - term securities pushes their yields even lower, setting in motion a steeper up - sloped normal yield curve.

First, a normal yield curve reflects circumstances where short - term yields are lower than long - term yields.