Bear Flattener

Bear Flattener

A situation in which the yield curve for bonds is flattening. That is, short-term interest rates on bonds rise more rapidly than long-term rates so that the two begin to converge, resulting in a flat (or flatter) yield curve when it is plotted on a graph. This is considered a bearish indicator because it means that investors believe that the higher interest rates on short-term bonds may produce a higher return than stocks will in the short-term. See also: Inverted yield curve, bullish flattener.
References in periodicals archive ?
The 5s-30s spread has narrowed 1.7 bp to +29 bp in a bear flattener.
The belly is underperforming the wings, with a bear flattener on 5s-30s of less than a bp to +29.3 bp.