Glossary term

Yield curve

The yield curve compares Treasury yields across different maturities and helps investors see how the bond market is pricing growth and inflation risk.

Reviewed April 4, 2026

By Emily Carter • Markets Editor

When people talk about the yield curve, they usually mean the shape formed by short-term and long-term Treasury rates. A steepening curve and an inverted curve can each signal different things about growth expectations and policy pressure.

For most investors, the yield curve is a context tool. It should inform how you read market conditions, not force constant changes to a long-term allocation.

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