Introduction to the Yield Curve

 

Video: 

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.