Steepening of the yield curve

Steepening of the yield curve

A change in the yield curve where the spread between the yield on a long-term and short-term Treasury has increased. Compare flattening of the yield curve and butterfly shift.
References in periodicals archive ?
Short rates are likely to be anchored at current low levels, thus resulting in a steepening of the yield curve,' he said.
He expects a gradual steepening of the yield curve in conventional bonds, stemming from the US benchmark, but admits to "some oddities" in the sukuk relationship.
Another potential catalyst for the industry has to do with the potential steepening of the yield curve.
In particular, we are concerned about the adequacy of credit allowances and the sustainability of reported net interest margins, which have benefited heavily from the steepening of the yield curve.
Yet the more recent steepening of the yield curve has been far from what we saw from 2001-2003.
However, any meaningful recovery will largely depend on a steepening of the yield curve and the resilience of the housing markets.
Long-term Treasury yields rose more than 20 bp in April, causing a noticeable steepening of the yield curve at the long end.
This development is a favorable indicator for the economy because a steepening of the yield curve is associated with higher growth in the future.
Thus the result of easy monetary policy is often a steepening of the yield curve and increased economic activity.
In the past, a steepening of the yield curve brought about by a decline in short-term interest rates stimulated the growth of bank deposits--as bank deposit rates, tied to interest rates on relatively long-term loans, tended not to fall as much as the rates on short-term marketable securities.
On the month, 2-year Treasurys and 5-year Treasurys were 9 and 13 basis points lower while 10-years and 30-years were 10 and 30 basis points higher, translating to an aggressive steepening of the yield curve.
While the absolute low level of interest rates continues to be a challenge, the recent steepening of the yield curve is a positive development.