Yield Curves
After LIBOR and daily internal nation rates are released, curves are plotted such as LIBOR curves, bond-yield curves, treasury-yield curves, swap curves, and forward curves. Each nation will have a different yield curve to represent the disparity of interest rates, yet all curves for the most part are represented by the official government bond-yield curve.
A yield curve is called the term structure of interest rates because it forecasts interest rates, affirms present market rates, inflation, and expected inflation. Lending and borrowing, investments, trading, and financing all are traded along the curve. The shape of the curve and the price of yields will determine where activity will be traded. For example, if the long end of ...
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