Flattening of the yield curve

(redirected from Flat Yield Curves)

Flattening of the yield curve

A change in the yield curve when the spread between the yield on long-term and short-term Treasuries has decreased. Compare steepening of the yield curve and butterfly shift.

Flattening of the Yield Curve

A change in the yield curve for bonds in which the yield spread on short-term and long-term Treasury bonds decreases. That is, a flattening of the yield curve occurs when either the yield increases for short-term bonds and decreases for long-term bonds, or vice versa. It is important to note that the yield curve is a graphic representation, plotting yield against maturity.
References in periodicals archive ?
They point to the recessions of 1991, 2000, and 2007-2009 as coinciding with flat yield curves between three-month Treasury Bills and 10-year Treasuries.
Today's highly levered domestic and global economies which have Cyfeasted' on the easy monetary policies of recent years can likely not stand anywhere close to the flat yield curves witnessed in prior decades," the fund manager stated.
Muted loan demand, negative benchmark rates, flat yield curves, oil and gas exposures - there's a bit of truth in all of these explanations for the global banking sell-off.
Very flat yield curves preceded the previous two, and there have been two notable false positives: an inversion in late 1966 and a very flat curve in late 1998.
The environment for the banking industry has grown difficult over the past several years, the result of historically low interest rates, flat yield curves and significant margin compression.
But did people really believe inflation would be tamed, or did perhaps the flat yield curves of the time really represent a good chance that inflation would re-emerge?
In particular, the flat yield curves of the 1980s are not now interpreted to reveal huge risk premia plus expected declines in interest rates.
dollar, slower growth in the monetary base, falling long-bond rates, flat yield curves, and declining commodity price indices.
This is a change from last quarter when we felt macroeconomic fundamentals were favorable, but flat yield curves had already discounted favorable prospects.
Yield curve inversions have preceded each of the last six recessions (as defined by the NBER, very flat yield curves preceded the previous two, and there have been two notable false positives: an inversion in late 1966 and a very flat curve in late 1998.
83 N/A Federal Reserve data on Treasury rates indicates flat yield curve.