What Is The Yield Curve? Why Is It Important? 4

The shape of the yield curve gives us important indications of what the future holds for the economy

Let’s look at this from the simplest of perspectives.

Ignore, for the moment, that the yield curve we’ve been referring to is that of UST yields. Instead, just think of yields as interest rates in the most basic sense – how much a business would pay to borrow money.

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