Curve Steepening

A yield-curve move where the SLOPE increases -- typically short-end rates falling (or rising less) while long-end rates rise (or fall less). Steepening commonly accompanies recession-to-recovery transitions (the Fed cuts short-rates while long-rates re-price for growth). At matched duration, a barbell underperforms a mid-curve bullet on a steepening: the short-leg gain only partially offsets the long-leg loss, because the long leg carries more of the barbell's duration. A bullet is close to unaffected by a twist that pivots near its own maturity.

Lessons that use this term

• Key-Rate Duration: Decomposing Curve Risk by Maturity
• Yield-Curve Steepeners: Long Short-End, Short Long-End

Related terms

10Y Treasury · Altman Z-Score · Asset Sensitivity · Basel III · Bond ETF · Bretton Woods

Open this term in the app → — no account needed; browse the full glossary while you research.