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Yield Curve
Macro & the Fed
The yield curve lines up the yields of bonds from the same issuer (usually the US Treasury) from the shortest maturity to the longest.
Normally it slopes upward, because investors want more yield for tying up money longer. The short end is shaped mostly by expectations for the Fed's policy rate, the long end by expectations for growth, inflation and risk. The slope is usually measured as the gap between the 10-year yield and the 2-year or 3-month yield.
The Shape of It
A conceptual drawing; it does not show a real series.
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