**8. Conclusions**

In this work, we have proposed DCOBS, a methodology for forecasting the dynamics of the term structure of interest rates extending the Constrained Smoothing B-Splines curve model.

The results have shown a grea<sup>t</sup> predictability power of the DCOBS model on the short- and middle-term, which are extremely important for traders and other financial market specialists. In comparison, the AFNS model has shown poor fitting as seen in Figure 1 and lack of stability in the beginning of the curves. Even though the accuracy of DCOBS in the middle and long-term is statistically equivalent to AFNS, the stability of the DCOBS can certainly be explored in future works to improve its predictability quality.

Finally, DCOBS can be a powerful tool to be applied in other areas like biology, physics, earth sciences, etc.

**Author Contributions:** E.M. and A.E.F. stated the real problem; E.M. obtained and processed the data, wrote all the programs and obtained the results; E.M., A.P.A., M.M. and A.E.F. analyzed the results; E.M. prepared the first draft manuscript; E.M., A.P.A., M.M. and A.E.F. revised the text and contributed to the conclusions. Authorship must be limited to those who have contributed substantially to the work reported. All authors have read and agreed to the published version of the manuscript.

**Funding:** This research was funded by FAPESP 18/04654-9.

**Conflicts of Interest:** The authors declare no conflict of interest.
