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- Historically, three types of shapes have been observed for the yield curve.
- The relative change in the yield for each treasury maturity known as a shift in the yield curve.
- Litterman and Scheinkmin discussed three factors which explain historical returns. These factors are - changes in the level of rates, changes in the slope of the yield curve, and changes in the curvature of the yield curve.
- On-the-run treasury issues are the most recently auctioned issues of a given maturity. They include different T-Bills, T-Notes and T-Bonds.
- The two important theories related to the shapes of the yield curve are - expectations theory and market segmentation theory.