Interest rates continue to fall. Rates at all maturities have dropped roughly half a point since late June. Long-term rates have fallen by 2 percentage points since their cyclical peak in November 1994. and more recently, short-term rates have also headed lower. The sharp decline in medium-term rates has not only flattened the yield curve, but has given it an uncharacteristic shape; steeper at the long end.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-01, pp. 05, 01.01.1996.