In September, the yield curve on government securities moved noticeably lower (about 20 basis points), but retained its general shape. The weekly average of the 3-month constant-maturity series moved below 5%. The 3-year, 3-month spread moved from 85 basis points to 91, while the other closely watched spread, the 10-year, 3 month, held steady at 110 basis points. Longer-term capital market rates also headed down, returning to the low levels seen last December, and spreads were little changed.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-10, pp. 05, 10.01.1997.