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CEFR C1 — Advanced

Yield curve

Definition

(formal, economics) A graphical representation showing the relationship between the yields (interest rates) of bonds with different maturities, typically used to assess the overall direction of interest rates and the health of an economy.

Example Sentences

1Analysts study the yield curve to predict future economic trends and make informed investment decisions.
2Is the inverted yield curve a reliable indicator of an impending recession?
3The yield curve has flattened significantly over the past quarter, suggesting a decrease in long-term interest rates.
4Investors closely watch the yield curve for signs of changes in monetary policy and its potential impact on the stock market.
5A steep yield curve often indicates a strong economy with high growth prospects, while a flat curve may signal a slowdown.

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