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positive yield curve

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Positive yield curve
When long-term debt interest rates are higher than short-term debt rates (because of the increased risk involved with long-term debt security).

positive yield curve
The normal relationship between bond yields and maturity lengths that results from higher interest rates on long-term bonds than on short-term bonds. Positive refers to the slope of the curve drawn to depict this relationship. Compare negative yield curve. See also flat yield curve.


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