Since last month, the yield curve has flattened slightly, with very little movement except at the long end. The 3-year, 3-month spread stand at 96 basis points (b.p.) and the 10-year, 3-month spread is at 191 b.p., both above their long-term mean. Since the beginning of the last year, however, the curve has become noticeably steeper. At the long end, 30-year rates have risen nearly a point, while at the short end, the 2-year, 3-month spread has changed from a slight inversion of -2 b.p. to a normal +82. The longer-term capital market rates continue to track changes in the 30-year Treasury bond closely.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-03, pp. 05, 03.01.1997.