Inverted yield curve

An inverted yield curve is a situation where securities with short-term maturities attract higher interest rates and yields than those with longer-term maturities.

Also known as a 'falling yield curve' or an 'inverse' or 'negative' yield curve.

It is so called because the term premium is negative.

See also

• Flat yield curve
• Forward yield
• Par yield
• Positive yield curve
• Rising yield curve
• Term premium
• Yield curve
• Zero coupon yield