Bear Steepener

What is 'Bear Steepener'

Bear steepener is the widening of the yield curve caused by long-term rates increasing at a faster rate than short-term rates. This causes a larger spread between the two rates as the long-term rate moves further away from the short-term rate.

BREAKING DOWN 'Bear Steepener'

This widening yield curve is similar to a bull steepener except with a bear steepener this is driven by the changes in long-term rates, compared to a bull steepener where short-term rates have a greater effect on the yield curve.

RELATED TERMS
  1. Bull Steepener

    A change in the yield curve caused by short-term rates falling ...
  2. Curve Steepener Trade

    A strategy that uses derivatives to benefit from escalating yield ...
  3. Bull Flattener

    A yield-rate environment in which long-term rates are decreasing ...
  4. Flat Yield Curve

    A yield curve in which there is little difference between short-term ...
  5. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments ...
  6. Arrears Swap

    An interest rate swap in which the floating payment is based ...
Related Articles
  1. Bonds & Fixed Income

    Bond Yield Curve Holds Predictive Powers

    This measure can shed light on future economic activity, inflation levels and interest rates.
  2. Investing Basics

    Interest Rates And Your Bond Investments

    By understanding the factors that influence interest rates, you can learn to anticipate their movement and profit from it.
  3. Bonds & Fixed Income

    The Impact Of An Inverted Yield Curve

    Find out what happens when short-term interest rates exceed long-term rates.
  4. Term

    Understanding Interest Rates Inflation And The Bond Market

    Interest rates, bond yields and inflation expectations are all correlated.
  5. Bonds & Fixed Income

    Advanced Bond Concepts: Term Structure of Interest Rates

    The term structure of interest rates, also known as the yield curve, is a very common bond valuation method. Constructed by graphing the yield to maturities and the respective maturity dates ...
  6. Investing News

    U.S. Recession Without a Yield Curve Warning?

    The inverted yield curve has correctly predicted past recessions in the U.S. economy. However, that prediction model may fail in the current scenario.
  7. Bonds & Fixed Income

    Understanding Interest Rates, Inflation And Bonds

    Get to know the relationships that determine a bond's price and its payout.
  8. Bonds & Fixed Income

    Interest Rates, Inflation and the Bond Market

    Interest rates, bond prices and inflation all have an impact on one another.
  9. Stock Analysis

    How Healthy Is The Economy, Really? This May Be The Only Way To Tell

    For many market strategists, the Federal Reserve's multi-trillion-dollar stimulus program has had one huge drawback.The Fed's massive quantitative easing (QE) programs have rendered what's known ...
  10. Investing Basics

    How Banks Set Interest Rates On Your Loans

    On the face of it, figuring out how a bank makes money is a pretty straightforward affair. A bank earns a spread on the money it lends out from the money it takes in as a deposit. The net interest ...
RELATED FAQS
  1. How can the yield curve help me make investment decisions?

    Learn about the yield curve, and discover why this chart is an important economic indicator. How do Treasury bond yields ... Read Answer >>
  2. What is the difference between term structure and a yield curve?

    Understand the difference between the term structure of interest rates and a yield curve, if any. Learn what the yield curve ... Read Answer >>
  3. What is the difference between the Daily Treasury Long-Term Rates and the Daily Treasury ...

    Find out more about the daily Treasury long-term rates, daily Treasury yield curve rates and the difference between these ... Read Answer >>
  4. Where on the Internet can I find yield curves over various periods?

    Find out where to locate reliable yield curve information on the Internet, including the U.S. Department of the Treasury ... Read Answer >>
  5. Below is an example of US Treasury yields for various maturities ...

    The correct answer is b. A normal yield curve chart shows long-term debt instruments having higher yields than short-term ... Read Answer >>
  6. How do interest rate changes affect the profitability of the banking sector?

    Discover the impact of interest rates on the profitability of the banking sector. When rates rise, profits increase for the ... Read Answer >>
Hot Definitions
  1. Demand Curve

    The demand curve is a graphical representation of the relationship between the price of a good or service and the quantity ...
  2. Goldilocks Economy

    An economy that is not so hot that it causes inflation, and not so cold that it causes a recession. This term is used to ...
  3. White Squire

    Very similar to a "white knight", but instead of purchasing a majority interest, the squire purchases a lesser interest in ...
  4. MACD Technical Indicator

    Moving Average Convergence Divergence (or MACD) is a trend-following momentum indicator that shows the relationship between ...
  5. Over-The-Counter - OTC

    Over-The-Counter (or OTC) is a security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, ...
  6. Quarter - Q1, Q2, Q3, Q4

    A three-month period on a financial calendar that acts as a basis for the reporting of earnings and the paying of dividends.
Trading Center