Skip to main content

Money and Financial Markets

(PDF PDF icon)

The inversion of the yield curve observed earlier this year has nearly disappeared. The curve remains mildly inverted only for maturities in the range of six months through two years. The two-year Treasury rate currently is just 2.6 bp below the six month rate. Short-term rates have moved in step with federal funds rate increases. Since the current round of policy tightening began in June 2004, Treasury rates have moved up more than 330 bp at the short end of the maturity spectrum. Long-term Treasury yields increased more than 30 bp from the beginning of April, resulting in a noticeable steepening at the long end of the yield curve. The 20-year Treasury rate rose to 5.37% (the highest level in almost two years), while the 10-year rate reached 5.14% (the highest in almost four years.)


Suggested citation: “Money and Financial Markets,” Federal Reserve Bank of Cleveland, Economic Trends, no. 06-06, pp. 06-07, 06.15.2006.

Upcoming EventsSEE ALL