A yield curve normal is a term used by investors and financial professionals to describe the shape of a graph showing the relationship between short-term and long-term debt. In a normal yield curve, long-term debt has higher yields than short-term debt, meaning that over time, your money earns more interest when invested in longer-term investments. It’s a reflection of the current economic environment, with investors taking on additional risk — and, therefore, being rewarded with higher returns — for making longer-term commitments. The shape of the yield curve also reflects market expectations about future interest rate trends, so it can be an important measure of investor sentiment.