Flattening of the yield curve

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 ?
The outlook for NIMs is a bit clouded, as the first rate hike will be preceded by the end of the Fed's bond-buying programme, which is expected to result in a flattening of the yield curve.
The outlook for NIMs is a bit clouded, as the first rate hike will be preceded by the end of the Fed's bond-buying program, which is expected to result in a flattening of the yield curve.
Barra Sheridan, a rates trader at Bank of Montreal in London, then said: "The flattening of the yield curve is continuing.
There's been a flattening of the yield curve, a squeeze on interest margins and a squeeze from the economic slowdown.
The reason for that more reporting is the change in the interest-rate environment; specifically, there's the flattening of the yield curve, and that effectively lowered the HMDA regulation's trigger for reporting a loan as higher-priced.
A dramatic flattening of the yield curve created significant pressure on our net interest margin.
The recent flattening of the yield curve has generated significant controversy.
Professional investors are likely to be concerned over the flattening of the yield curve.
This is reflected in a flattening of the yield curve for short-term interest in the US, Canada and the UK since July, as the pace of monetary tightening is expected to be slightly more measured than previously forecast.
The surge in bank lending and the flattening of the yield curve this year have provided a significant impetus for growth of the broad monetary aggregates.
This has allowed our revenue growth to progress nicely in spite of the challenges presented by the flattening of the yield curve and the related competitive rate pressures on attracting deposits.
The spill-over effects of unconventional monetary policies are not insignificant -- volatility in capital flows, pressures in asset markets, a general increase in financial stability risks and a flattening of the yield curve that distorts investment decisions -- these are not trivial consequences.