Fixed Income
Flat Yield Curve
Definition
What is Flat Yield Curve?
A yield curve with little difference between short- and long-term yields.
Example in practice
How This Looks in Practice
One-year and ten-year bonds both yield close to 12%.
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Related Terms
Fixed Income
Bond
A debt security through which an investor lends money to an issuer in return for promised payments.
Fixed IncomeIssuer
The government, company, or organisation that creates and sells a security.
Fixed IncomeFace Value
The principal amount stated on a bond and usually repaid at maturity.
Money MarketsTreasury Bill
A short-term government debt instrument usually issued at a discount and repaid at face value.