In the past several months, the yield curve has flattened noticeably, with the benchmark 10-year, 3-month and 3-year, 3-month spreads decreasing from 70 to 40 basis points and from 64 to 46 basis points. The middle continues to show some inversions, where shorter rates exceed longer ones. The long bond rate, which as of May 1 had surpassed its early January level, has since dropped 37 basis points.
Suggested citation: “Interest Rates,” Federal Reserve Bank of Cleveland, Economic Trends, no. 98-07, pp. 05, 07.01.1998.