See: Inverted Yield Curve.
arises when short-term interest rates are higher than long-term ones.
On securities that are of similar quality, a condition in which yields on short term securities are higher than the yields on long term securities. Typically, short term interest rates are lower than long term rates--those who invest their money for longer periods are taking more risk. See: Long Term; Positive Yield Curve; Risk; Risk/Reward Ratio; Short Term; Yield; Yield Curve
A chart in which the yield level is plot on the vertical axis and the term to maturity of debt instruments of similar credit-worthiness is plotted n the horizontal axis. The yield curve is positive when long-term rates are higher than short-term rates However; yield curve is negative or inverted.