A long bond is a bond that matures in more than 10 years. These bonds are riskier than shorter-term bonds of the same quality but normally pay investors a higher yield.
A negative yield curve, also referred to as an inverted yield curve, occurs when long-term debt instruments have a lower yield than short-term debt instruments of the same credit quality, often indicating an imminent economic recession.
A visual representation that plots the yields of bonds with varying maturities. It is an essential tool for understanding market sentiment and interest rate expectations.
