Maturity vs. Yields

Key takeaways

• Shorter maturities usually mean lower yields — you're paid less for tying up cash for less time.
• When the yield curve steepens, longer maturities offer more income but carry more rate risk.
• An inverted curve flips the relationship: short-dated paper can pay more than long-dated.
• Laddering across maturities spreads reinvestment risk instead of betting on one point on the curve.