Long-Term Behavior of Yield Curves

B-Tier
Journal: Journal of Financial and Quantitative Analysis
Year: 1988
Volume: 23
Issue: 1
Pages: 105-110

Authors (2)

Siegel, Andrew F. (not in RePEc) Nelson, Charles R. (University of Washington)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The flattening of yield curves at long-term maturities is proven to be approximately proportional to the reciprocal of the time to maturity under general conditions. This is a consequence of the persistence of earlier forward rates in the averaging process, which produces yields from forward rates. This relationship suggests the use of a “reciprocal maturity yield curve,” which significantly facilitates the interpretation of the behavior of long-term yields by linearizing them for display over a shorter interval. This is illustrated using a yield curve for U.S. Treasury bills.

Technical Details

RePEc Handle
repec:cup:jfinqa:v:23:y:1988:i:01:p:105-110_01
Journal Field
Finance
Author Count
2
Added to Database
2026-01-26