Hintakäyriä

Hintakäyriä, also known as yield curves, are graphical representations of the yields of bonds with different maturities but similar credit quality. Typically, the maturities are plotted on the horizontal axis and the corresponding yields are plotted on the vertical axis. The most common yield curves are for U.S. Treasury securities, which are considered to be virtually risk-free.

A normal yield curve slopes upward, indicating that longer-term bonds have higher yields than shorter-term bonds. This reflects the expectation that investors demand higher compensation for lending their money for longer periods due to increased risk and the time value of money. An inverted yield curve slopes downward, with short-term bonds offering higher yields than long-term bonds. This is often seen as a predictor of an economic recession. A flat yield curve indicates that yields are similar across all maturities.

Yield curves are closely watched by economists and investors as they can provide insights into market expectations about future interest rates and economic growth. Changes in the shape of the yield curve can signal shifts in investor sentiment and can influence investment decisions and monetary policy.