A parallel shift
in the yield curve
is a shift in the yield curve - that is, a change in yields - in which all maturities
change by the same number of basis points
In other words, if the yield on the 3 month T-bill
increases 100 basis points (or one percent)
, then the 6 month, 1 year, 5 year, 10 year, 20 year, and 30 year rates will all increase by 100 basis points as well.
studies has estimated that over 90% of all shifts of the yield curve are indeed parallel.
See also: Non-parallel shift in the yield curve