Yield Curves Explained: What They Are and How to Read Them

A yield curve is a graph that shows the interest rates of bonds with equal credit quality plotted against their maturity dates. In this episode, Ryan explains what the chart actually tells you: a normal yield curve slopes upward, meaning longer-term bonds pay more than short-term ones. A flat curve means there is little difference across maturities, and an inverted curve means short-term rates are higher than long-term ones.Ryan also clarifies that when people talk about the yield curve on the news, they are almost always referring to US Treasury bonds specifically. He covers where to find the current Treasury yield curve and how to read it without getting lost in the technical details. This is a foundational episode, and the follow-up episode on inverted yield curves picks up where this one leaves off.Find "Your Fiscal Physical" the book on AmazonIf you have suggestions or feedback, please email us at: [email protected], as always, Stay the Course!