4.5.2 Theories Explaining the Shape of the Yield Curve

In this section

• Expectations Theory in Bond Markets: Understanding Yield Curves and Interest Rate Predictions
  Explore Expectations Theory and its role in shaping yield curves and predicting interest rates in bond markets. Learn how this theory influences investment decisions and market expectations.
• Liquidity Preference Theory in Bond Markets: Understanding Yield Curves and Investment Strategies
  Explore the Liquidity Preference Theory and its impact on the yield curve, bond pricing, and investment strategies. Learn how liquidity premiums influence investor behavior and market dynamics.
• Market Segmentation Theory in Bond Markets: Understanding Yield Curve Dynamics
  Explore Market Segmentation Theory and its impact on bond yield curves, focusing on how investor preferences and institutional factors shape interest rates across different maturities.