That kink in the yield curve

Can anyone explain to me that little kink in the yield curve at its very outset?

What I mean is how at the outset the yield curve rises, then spikes down (for what looks like a few months) then begins to rise again at the 1 year mark into the traditional looking yield curve.

?

7 Comments
 

Which yield curve?

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And I mean particularly how the treasury curve is depicted in abstract, like in a textbook. The artist, in drawing out the yield curve, usually adds that little tick at the beginning rather than a smooth sloped line from the y-axis.

 

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