korkokäyrästä

Korkokäyrä, often translated as the yield curve, is a graphical representation of the yields of bonds with identical credit quality but different maturity dates. Typically, it plots the interest rates (yields) of U.S. Treasury securities against their respective times to maturity, ranging from short-term bills to long-term bonds. The shape of the yield curve provides valuable insights into market expectations about future interest rates and economic activity.

A normal yield curve slopes upward, indicating that longer-term bonds have higher yields than shorter-term bonds. This is generally the case when investors expect the economy to grow and inflation to rise. Conversely, an inverted yield curve slopes downward, where short-term bonds offer higher yields than long-term bonds. This is often seen as a predictor of an economic slowdown or recession, as investors anticipate interest rate cuts by central banks in the future. A flat yield curve suggests that yields are similar across all maturities, which can signal a transition period between an upward or downward sloping curve and may indicate economic uncertainty.

The yield curve is a significant tool for economists, investors, and policymakers. It helps in understanding market sentiment, forecasting economic trends, and making investment decisions. Changes in the yield curve's shape can influence borrowing costs for businesses and consumers, affecting investment and consumption patterns. Central banks also monitor the yield curve closely as it reflects the effectiveness of their monetary policy actions.