Interest rates influence virtually every part of the financial markets – from bond prices and borrowing costs to equity valuations. In Module 2, you will focus on interest rate data and yield curve analysis to understand how shifts in interest rates translate into market risk. The module covers the construction of yield curves and explains different curve shapes – normal, inverted, and humped – along with their economic interpretations. You’ll examine historical interest rate time series and learn to apply interest rate shocks to assess sensitivity in bond portfolios. A special emphasis is placed on yield spreads as key risk indicators: for example, the U.S. 10-year vs 3-month Treasury yield spread, which has historically been a closely watched predictor of recessions.

Hands-On Application: Build an automated market report with Python that continuously monitors yield spreads and equity market performance. By the end of this module, you will have a functional dashboard that fetches yield curve data and S&P 500 index levels, then generates visualizations and summary reports. This practical project cements your ability to create dynamic, data-driven risk reports for real-world market monitoring.