The yield curve has flattened noticeably since last month. Although rates have fallen at all maturities, longer rates have dropped, tightening up spreads. the 3-year, 3-month spread declined from 135 to 110 basis points, and the important 10-year, 3-month spread fell even further, from 166 to 135 basis points.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-07, pp. 06, 07.01.1997.