8 lines
427 B
Markdown
8 lines
427 B
Markdown
Under Expectations Theory, the shape of the yield curve tells you what the market thinks rates will do:
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- **Upward sloping (normal)** → rates expected to **rise**
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- **Downward sloping (inverted)** → rates expected to **fall**
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- **Humped** → rates expected to **rise then fall**
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- **Flat** → rates expected to **stay the same**
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The yield curve is essentially the market's collective forecast for future interest rates. |