The yield curve has moved upward and steepened since last month. The 3-month rate moved up 20 basis points (bp); the 5-year rate increased fully 49 bp. The 10-year, 3- month spread now stands at 109 bp, up from 85 bp last month. Traditional factors such as expected inflation and future real activity may be influencing the yield curve. In addition, the supply of some maturities is declining as the Treasury Department begins to retire debt.
Suggested citation: "Interest Rates," Federal Reserve Bank of Cleveland, Economic Trends, no. 00-02, pp. 06, 02.01.2000.