Normal Yield Curve

From Reuters Financial Glossary

Synonym: Positive Yield Curve

A chart illustrating that yields on long-term securities are at higher rates than the rates on short-term securities, to reflect the extra risk of holding them for a longer period. Also known as a positive yield curve. The opposite of an inverted yield curve when short-term yields are above longer-term yields.

See also: Inverted Yield Curve