The Yield Curve Explained (Normal vs Inverted, Term Structure Basics) | Episode 2
About this lesson
What is the yield curve and why does it matter? In this video, we explain the yield curve and the term structure of interest rates, showing how interest rates vary across different maturities and what this reveals about expectations, risk, and financial markets. Interest rates are not just “high” or “low.” They differ depending on the time horizon, from overnight rates to 30-year government bond yields. This maturity profile forms the yield curve, one of the most important and information-rich concepts in macroeconomics and fixed income markets. This video covers: what the term structure of interest rates is the three main yield curve shapes: normal, inverted, and flat how interest rate expectations and risk premia influence the curve why the short end and long end reflect different economic forces This episode builds on the foundations of interest rates and is part of a 9-week series, with one short episode released every Friday. Learn more with our bestselling certifications https://www.fe.training/product-category/online-finance-courses/?utm_source=youtube&utm_medium=organic-social&utm_campaign=yield-curve&utm_term=term-structure Why Financial Edge Financial Edge is the trusted training partner for top investment banks’ new hires. Our courses are designed to help you stand out in recruiting and perform on the job, with structured, practical training covering financial markets, trading, derivatives, and risk. Explore our alumni network https://www.linkedin.com/school/financial-edge-training/people/ Visit our website https://www.fe.training/?utm_source=youtube&utm_medium=organic-social&utm_campaign=yield-curve&utm_term=term-structure Connect with us on social media Facebook: https://www.facebook.com/fetraining/ Instagram: https://www.instagram.com/fe.training/ LinkedIn: https://www.linkedin.com/school/financial-edge-training/ #YieldCurve #TermStructure #InterestRates #BondYields #FixedIncome #MacroEconomics #FinanceEducation #InvestmentBanking #Fin
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