The yield curve is a graphical representation that shows the relationship between interest rates and the time to maturity of debt securities, typically government bonds. It plots the interest rates of bonds with different maturities, ranging from short-term to long-term. A normal yield curve slopes upward, indicating that longer-term bonds have higher interest rates than shorter-term ones, reflecting the risks associated with time. There are different shapes of yield curves, including normal, inverted, and flat. An inverted yield curve occurs when short-term interest rates are higher than long-term rates, often signaling an impending economic recession. Investors and economists closely monitor the yield curve as it provides insights into future interest rate changes and economic conditions.