A graphical representation of the market LIBOR rates for maturities typically under one year. LIBOR rates are not intended for long-term borrowing, so the LIBOR curve is most useful for setting short-term interest rates. Long-term rates are inferred from the rates of similar financial instruments. The LIBOR curve and the Treasury yield curve are the two most commonly used proxies for the risk-free return of a bond. The LIBOR curve tends to be steeper and to start at a higher yield percentage than the Treasury yield curve. also called interest rate swap curve, floating-rate curve.