The curve formed when plotting yield vs. maturity during a period when short-term yield (interest rates) are lower than long-term yields. This is the typical curve during periods of easy money and loose credit. It is also called an ascending or normal yield curve.

On debt securities of similar quality, a condition in which the yields on long term securities are higher than the yields on short 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: Debt Securities; Long Term; Negative Yield Curve; Risk; Short Term; Yield