Robeco logo

Disclaimer

The information contained in the website is solely intended for professional investors. Some funds shown on this website fall outside the scope of the Dutch Act on the Financial Supervision (Wet op het financieel toezicht) and therefore do not (need to) have a license from the Authority for the Financial Markets (AFM).

The funds shown on this website may not be available in your country. Please select your country website (top right corner) to view more information.

Neither information nor any opinion expressed on the website constitutes a solicitation, an offer or a recommendation to buy, sell or dispose of any investment, to engage in any other transaction or to provide any investment advice or service. An investment in a Robeco product should only be made after reading the related legal documents such as management regulations, prospectuses, annual and semi-annual reports, which can be all be obtained free of charge at this website and at the Robeco offices in each country where Robeco has a presence.

By clicking Proceed I confirm that I am a professional investor and that I have read, understood and accept the terms of use for this website.

Decline

Fixed income

Yield curve

The yield curve is a graphical representation that shows the relationship between the interest rates (yields) of bonds with different maturities, typically for government bonds of the same credit quality. It plots bond yields on the vertical axis and maturities on the horizontal axis, helping investors understand how interest rates change over time.


Types of yield curves

There are several types of yield curves:

Normal yield curve

Slopes upward, indicating that longer-term bonds have higher yields than short-term bonds, this can reflect expectations of economic growth and higher inflation in the future.

glossary-fixed-income-yield-curve-normal-yield-curve.png


Inverted yield curve

Slopes downward, where short-term bonds have higher yields than long-term bonds, can be seen as a signal of an impending economic recession.

Inverted Yield Curve


Flat yield curve

Indicates that short- and long-term yields are similar, suggesting uncertainty in the economic outlook.

The shape of the yield curve is influenced by factors like interest rate expectations, economic conditions, and central bank policies. It serves as a valuable tool for assessing economic conditions, guiding investment decisions, and shaping monetary policy.

Investors and policymakers monitor yield curve movements closely, as changes in its shape can signal shifts in economic growth, inflation, or risk sentiment, impacting both bond markets and broader financial markets.

Also read

Investment grade bonds
Creditworthiness
Sovereign bonds


A long history of innovation