Flattening of the yield curve(redirected from Flattening of the 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.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.
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.
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