Definition
A line showing Treasury yields from the shortest maturities to the longest.
The story
Normally, lending for 10 years pays more than lending for 3 months, because tying up money longer is riskier. So the line slopes upward. When the shape changes, it tells you how investors see the road ahead.
Why markets watch it
Its shape is one of the most-watched signals about the economy's direction.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms