Image source: Getty Images The yield curve is a line on a graph that typically shows the relationship between the yield investors receive on a bond investment and the time until the bond matures. The borrowing period, or the time to maturity, is usually represented on the x-axis; the annual yield to maturity appears on the y-axis. A yield curve is a simple plot that compares the yield investors will realise from a bond to the length of the bond. Typically, short-term bonds offer much smaller yields but are considered less risky, so they're at the lower left-hand side of the graph.

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