yield curve

This term is a specialized piece of financial jargon used primarily in macroeconomics and bond trading. It describes the visual plot of interest rates across different maturity dates, serving as a barometer for investor sentiment regarding future economic growth.

An inverted yield curve occurs when short-term interest rates are higher than long-term rates, a phenomenon widely regarded as a precursor to an economic downturn. Because it is a technical term of art, it is almost exclusively used in professional, academic, or journalistic contexts related to finance and economics.