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Economic Commentary

Is There a Message in the Yield Curve?

Short-term bond yields have moved above long-term bond yields over the past year. The resulting inverted yield curve indicates that monetary policy is tighter than it could be and may be tighter than it has been, but provides no basis for judging whether policy is tight (or easy) enough.

The views authors express in Economic Commentary are theirs and not necessarily those of the Federal Reserve Bank of Cleveland or the Board of Governors of the Federal Reserve System. The series editor is Tasia Hane. This paper and its data are subject to revision; please visit for updates.

Suggested Citation

Stevens, Edward. 1989. “Is There a Message in the Yield Curve?” Federal Reserve Bank of Cleveland, Economic Commentary 3/15/1989.

This work by Federal Reserve Bank of Cleveland is licensed under Creative Commons Attribution-NonCommercial 4.0 International