Parallel Shift In The Yield Curve

Categories: Finance,

A shift in economic conditions in which the change in the interest rate on all maturities is the same number of basis point(s). In other words, if the three month T-bill increases 100 basis point(s) (one %), then the 6-month, 1-year, 5-year, 10-year, 20-year, and 30-year rates all increase by 100 basis point(s) as well. Related: Non-parallelshift in the yield curve.