The Yield Curve
The yield curve on Treasury securities - which describes rates of return at different maturities in ascending order - has flattened dramatically since the third quarter of 1994. At the end of December, the different between the 10 - year Treasury yield and the effective federal funds rate was less than 20 basis points (a basis point represents 1/100 of a percentage point).
Suggested citation: “The Yield Curve,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-01, pp. 10-11, 01.01.1996.