Flattening of the yield curve

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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 ?
Lower or flat yields on these bonds result in higher liabilities.
A similar pattern was seen in prime shopping centres, with most of the markets monitored by Colliers reporting flat yields over the six month period.
The airline believes the most optimistic forecast for the next financial year, starting in April, is for EUR75 oil and flat yields to result in a growth in profits of 6% to pounds 375m next year.
The carrier said that it expects significant increases in passenger volumes but flat yields in Q3 with yields being 5-10% lower in Q4, Reuters reported.
We are very pleased with our first quarter results, particularly when you consider that the industry experienced strong competition for core deposits and generally flat yields on earning assets.