QUICK DEFINITION
Yield Curve Control is a policy in which a central bank targets or constrains yields at selected maturities rather than focusing only on a short-term policy rate.
WHY IT MATTERS
Why Yield Curve Control matters in bond markets
YCC directly links monetary policy to the shape and level of the government-bond yield curve.
MARKET CONTEXT
How to think about it
Bond investors use yield curve control as part of a wider framework that links prices, yields, cash flows, liquidity and risk. The concept should therefore be read together with its related terms rather than as an isolated definition.
Is Yield Curve Control important for fixed-income investors?
← Back to the Bond Market Glossary Yes. YCC directly links monetary policy to the shape and level of the government-bond yield curve.