In the last month, the yield curve has shifted upward and steepened somewhat, with long rates pushing to 6.95%. Since the beginning of the year, the curve has become noticeably steeper; in fact, two-year rates have increased more than 30-year rates. The 3-year, 3-month spread has increased from six basis points to 117 (the average is 80), and the 10-year, 3-month spread has increased from 43 basis points to 161 (the average is 120). The fears expressed early this year about a sustained inversion have not been confirmed.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 96-10, pp. 06, 10.01.1996.