The yield curve flattened again last month as long rates continued to drop. Between November 28 and December 19, the spread between 3-year rates and 3-month rates narrowed from 50 to 43 basis points, and the gap between 10-year rates and 3-month rates shrank from 59 to 51 basis points. The contrast with the week ending last January 24 is more stark, with the same spreads changing from 99 and 140 basis points, respectively.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-01, pp. 06, 01.01.1998.