USING YIELD CURVES IN BOND INVESTING

Yield curves show the relationship between the yields and maturities of bonds. The market prices of bonds change with interest rates, and these price changes have an inverse relationship to the bonds' yields.  As a result, yield curves can indicate how investors think interest rates will change in the future, and they can be an indicator of changes in the economy as a whole. Once you have mastered the art of reading a yield curve, you'll have a definite advantage to making wise investment decisions, especially when it comes to bonds. 

For more information on bonds, see the other tutorials in the Bonds category.