‘Short End’ and ‘Long End’ of the Yield Curve


These are some of the informal terms used. Usually Yield Curve is formed with two sets of Maturities. They are –

1. Short Term Rates with maturities less than year
(1d (1 Day), 2d, 3d, 1w (1 Week), 1m (1 Month), 2m, 3m, 6m, 1y (or 12m) )

2. Long Term Rates with maturities more than year
(2y, 5y, 10y, 15y, 30y)

Curve that represents upto 1 year is known as ‘Short End’ of the curve and the curve that represents long term rates is known as ‘Long End’ of the curve.

These terms are also used with any forward rate curve.

Just to add, the following are the common Yield Curves –
– Treasury Yield Curve
– LIBOR Curve
– Corporates



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