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Finance
Yield Curve Steepening
When the difference between long-term and short-term bond yields gets larger.
Steepening can happen because investors expect the economy to improve or because the central bank is cutting short-term rates. It is generally positive for banks and the economy but can hurt bond prices.
It's the yield curve stretching taller — long-term rates are rising faster than short-term rates.
Real world: If 10-year yields rise while 2-year yields stay flat, the curve steepens. This often signals expectations of stronger future growth and higher inflation.
💡 A steepening yield curve often means the market believes better times are coming.