fixed_income

Yield Curve Steepening

A yield curve steepening means the spread between short-term and long-term interest rates widens. Long-term yields rise relative to short-term yields, commonly measured by the difference between 2-year and 10-year U.S. Treasuries.

Example: During a period of rising inflation expectations, the 10-year Treasury yield moved higher faster than the 2-year yield, causing the yield curve to steepen.

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