Topic Videos
Fiscal Policy - The Bond Yield Curve
- Level:
- A-Level, IB
- Board:
- AQA, Edexcel, OCR, IB, Eduqas, WJEC
Last updated 14 Nov 2021
in this short revision video, we look at the economics of the bond yield curve.
The yield curve is a way of comparing rates of return on bonds of differing maturity.
Normally we would expect yields on longer-dated bonds to be higher than for shorter-dated securities – because of the risks of inflation going forward).
There are occasions though when the yield curve can become ‘inverted’ - this means that short term interest rates are greater than on long-dated bonds.
You might also like
Fiscal Policy - Bond Yields
Study Notes
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
GDP Bonds and Greek Debt
12th March 2015
![](https://tutor2u-net.imgix.net/user-photos/gbr_profile.jpg?auto=compress%2Cformat&crop=focalpoint&fit=crop&fp-x=0.5&fp-y=0.5&h=100&q=80&w=100)
Argentina looks to re-enter world capital markets
6th February 2016
Greek Economy: Grexit Benefits and Costs
Topic Videos
Why does 'Junk bond status' matter for South Africa?
4th April 2017
Debt crisis warning for poorest countries
4th April 2019
Currency Economics: The Collapsing Turkish Lira
Topic Videos