Over the course of 1999, the yield curve moved higher and steepened, resuming its normal upward slope from a position of relative flatness at the end of 1998. The 3-month yield moved from 4.5% to 5.39%. The 3- year, 3-month spread increased from –2 basis points (bp) to 72 bp, and the 10-year, 3-month spread increased from 15 bp to 85 bp. The extent to which this indicates stronger real growth, higher inflation expectations, or increased uncertainty remains unclear.
Suggested citation: "Interest Rates," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-01, pp. 06, 01.01.2000.