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Swap curve

The set of fixed rates, by maturity, at which market participants are willing to exchange a floating stream of payments.

How to read the number

It reflects expectations for the future path of the policy rate in almost pure form, without the influence of government borrowing volumes or demand for particular issues.

When the metric lies

Liquidity thins out at long maturities, so quotes at the far end represent the positions of a few participants rather than an agreement of the market.

Also known as: irs curve, fixed-for-floating curve

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