Financial terms, explained from first principles.

Income earned from holding a position over time.

The curvature of a bond's price-yield relationship.

Bond price sensitivity to interest rate changes.

The overnight rate at which U.S. banks lend reserves to each other.

The Federal Open Market Committee - the Fed's rate-setting body.

The rate at which prices rise across an economy.

Bond returns earned as time passes and the bond rolls down a positively-sloped yield curve.

Borrowing in low-yielding yen to buy higher-yielding assets globally.

Plot of bond yields across maturities.