# Yield curve

Market rates for different maturities of funds are usually different, with longer term rates often - but not always - being higher.

A yield curve describes today’s market rates (usually per annum) on fixed rate funds for a series of otherwise comparable securities, having different maturities.

There are three ways of expressing today’s yield curve:

- Zero coupon yield curve.
- Forward yield curve.
- Par yield curve.

If any one of the curves is known, then each of the other two can be calculated by using no-arbitrage pricing assumptions.

The shape of today's yield curve is influenced by - but not entirely determined by - the market's expectations about future changes in market rates.

The yield curve is sometimes also known as the Term structure of interest rates.

## See also

- Bootstrap
- Expectations theory
- Falling yield curve
- Fisher-Weil duration
- Flat yield curve
- Forward yield
- Green curve
- Greenium
- Inverse yield curve
- Inverted yield curve
- Negative yield curve
- Net interest risk
- No arbitrage conditions
- Par yield
- Positive yield curve
- Riding the yield curve
- Rising yield curve
- Secondary curve
- Spread risk
- Yield curve risk
- Zero coupon yield

## Other resources

Treasury essentials: Yield curves, The Treasurer, September 2013