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Finance Dictionary and Glossary of Investment Terms
Negative yield curve
Definition 1.
When the yield on a short-term security is higher than the yield on a long-term security, partially because high interest rates are creating a greater demand for short-term borrowing.
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Definition 2.
An uncommon situation in which long-term interest rates have lower yields than short-term interest rates. This is often a sign that interest rates are expected to decline. also called inverted yield curve.
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