The yield curve has flattened since last month, with short rates up and long rates down. The shift in the weekly averages of constant maturity rates was not large, however. The 3-year, 3-month spread decreased only five basis points (from 55 to 50), and the 10-year, 3- month spread shrank only 13 basis points (from 72 to 59). These spreads are narrower than their historical means of 85 and 120 basis points, respectively. Both medium and long rates remain well below their levels at the start of 1997, while short rates are slightly higher.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 97-12, pp. 06, 12.01.1997.