Normal Yield Curve

Normal Yield Curve

A yield curve that trends upward, indicating that the interest rates for long-term debt securities are higher than short-term debt securities. This is the regular way a yield curve trends because investors demand a higher return for the higher risk of tying up their capital in securities with longer maturities. It is less commonly called a positive yield curve. See also: Negative Yield Curve, Flat Yield Curve.