This app allows users to explore implied forward rates derived from the US Treasury par yield curve. Forward rates represent the market's implied future interest rates under no-arbitrage conditions.

The chart overlays the zero-coupon spot curve against the implied forward curve for the selected horizon. The spot curve is bootstrapped from the par yields shown on the Curves page. Spot rates differ from par yields because par yields embed coupon reinvestment assumptions — the spot rate at each tenor represents the pure discount rate for a single future cash flow. Forward rates can only be correctly derived from spot rates, not directly from par yields.

Instructions

  • choose the desired Date using the date selector — the chart updates automatically
  • choose the desired Forward horizon (how far into the future) from the dropdown
  • click the sparkle button to open ChatYCP and ask questions about the data (login required)

Notes

  • Date is pre-populated with the latest available trading day
  • Forward defaults to 1 Yr
  • try asking ChatYCP: "Is the forward curve above or below the spot curve?" or "What is the 1Y-forward 10Y rate?"

Use Cases

  • assess what the market implies about future interest rates
  • identify carry and rolldown opportunities along the curve
  • compare spot rates to forward rates to gauge term premium

Further Reading


Date
Forward