Explain use of yield curve in Treasury Management.

Yield curve in treasury management Graphical presentation of the term structure of interest ratio is known as Yield Curve. The term structure of interest rates is the relationship between the maturity and interest rates. So, the yield curve shows the relationship between time to maturity and yields for a particular category of bonds at a particular point of time. The horizontal axis represents the maturity and the vertical axis represents the yield. The treasury manager can use the yield curve to understand the expectation of interest rates. Yield curve can be used by him to take investment decisions. Shape of the yield curve shows the expected short-term and long-term interest rates.