It is a borrowing-price menu arranged by how long money is tied up.
01
Go deeper
Compare securities with similar credit quality. The curve reflects expectations about rates and inflation, plus compensation for holding longer maturities. Its shape can change for several reasons.
02
Make it concrete
Hypothetical illustration. Hypothetical yields of 3%, 4% and 5% for one-, five- and ten-year bonds form an upward-sloping curve.
03
When you read a headline
A curve describes market pricing; it is not a guaranteed prediction.