Money and Financial Markets
Toward the end of October, the yield curve became slightly inverted, with the six-month Treasury bill yield falling below the three-month yield. This inversion probably was driven by expected cuts in the federal funds rate. The yield curve also steepened significantly during October when, on net, long-term rates rose and short-term rates fell. Nonetheless, the curve remains fairly flat at the short end, as it has for much of the year.
Suggested citation: "Money and Financial Markets," Federal Reserve Bank of Cleveland, Economic Trends, no. 02-11, pp. 06-07, 11.01.2002.