The long end of the yield curve has shifted downward slightly since last month, whereas the short end has shifted upward. For the last full week of November, the 3-month and 6-month Treasury bill rates were 26 and 30 basis points (bp) higher than their October values. The 3-year, 3-month spread is down to 72 bp from 92 in October, and the 10-year, 3-month spread is down to 82 bp from 109. Although their predictive power is somewhat limited, these spreads indicate some concern about inflation over the short run.
Suggested citation: "Interest Rates," Federal Reserve Bank of Cleveland, Economic Trends, no. 99-12, pp. 06, 12.01.1999.