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Bonds

Yield Curve

A graph plotting bond yields against their maturities (e.g., 3-month, 2-year, 10-year, 30-year Treasuries).

In depth

Normal curve: long-term yields > short-term. Inverted curve: short-term > long-term — historically a reliable recession indicator. The 2y/10y Treasury spread is the most-watched. Steepening typically signals economic optimism; flattening or inversion signals concern.

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