Yield Curve

1. What is plotted on the yield curve? Be specific about the X and Y axes. Be specific about which securities' yields are plotted on a yield curve. Answer: U.S. Treasury Yield Curve A yield curve that shows the relationship between yields and maturity dates for a set of similar bonds, usually Treasuries, at a given point in time. Yield curves are used to compare yields of different securities, to benchmark rates and to discover …showed first 75 words of 1549 total…

…showed last 75 words of 1549 total…also referred to as the liquidity spread. The opposite situation - short term interest rates higher than longer term rates - will occur in the near future in the U.S. bond market. Yield curves move on a daily basis, representing the market's reaction to news. Based on the market segmentation analysis, the two-year yields are pushed up by Federal Reserve stead increasing rate, while low inflation and strong investor demand helped depress longer-dated yields.