The yield curve is a graphical representation of the relationship between interest rates and the time to maturity of bonds with similar credit quality.
It shows the yield (or rate of return) on bonds of different maturities, typically ranging from 3 months to 30 years. The yield curve can be upward-sloping (long-term rates higher than short-term rates), flat (long-term rates similar to short-term rates), or inverted (long-term rates lower than short-term rates). The shape of the yield curve can provide insights into the expectations and perceptions of investors about future economic growth and inflation.