The term structure of interest rates refers to the relationship between the yield (Yield) and the maturity (Maturity) of funds of different maturities at a certain point in time.

The term structure of interest rates reflects the supply and demand relationship of funds of different maturities, reveals the overall level and direction of change of market interest rates, and provides a reference basis for investors to invest in bonds and relevant government departments to strengthen bond management.

The term structure of interest rates refers to the relationship between a bond’s yield to maturity and its maturity period.

This structure can be represented by the interest rate term structure diagram, and the curve in the diagram is the yield curve. In other words, the yield curve represents the term structure of bond interest rates. The influencing factors mainly depend on the sensitivity of interest rates to maturity. The key lies in the country's long-term macroeconomic policies and the forward profitability of corporate investment.

So far, China’s deposit and loan interest rate structure is extremely simple, that is, long-term interest rates will be higher than short-term interest rates. Interest rate risk is generally defined as "the risk of loss (or income risk) due to changes in interest rates." The risk related to net interest income is called structural risk. It can also be understood as the relationship formed by the same period to maturity but different interest rates. Influencing factors include general risk, liquidity, income tax, bond maturity and many other reasons.