Introduction to the Yield Curve

The speaker provides an introduction to the yield curve, or the relationship between term to maturity and interest rates.  He walks through the defintion of the T-bills, T-notes, and T-bonds and discusses how they all have different yield curves as they have different terms to maturity.  In most cases, short term yields will be less than long term yields; however, in rare occasions, short term rates can be higher.  This is known as an inverted yield curve.