DEFINITION of 'Bull Steepener'
A change in the yield curve caused by shortterm rates falling faster than longterm rates, resulting in a higher spread between the two rates.
Next Up
BREAKING DOWN 'Bull Steepener'
A steepener differs from a flattener in that a steepener widens the yield curve while a flattener causes longterm and shortterm rates to move closer together. When the yield curve is said to be a bull steepener it means that the higher spread is caused by the shortterm rates, not longterm rates.
RELATED TERMS

Bear Steepener
A widening of the yield curve caused by longterm rates increasing ... 
Yield Curve Risk
The risk of experiencing an adverse shift in market interest ... 
Bull Flattener
A yieldrate environment in which longterm rates are decreasing ... 
Bear Flattener
A yieldrate environment in which shortterm interest rates are ... 
Flat Yield Curve
A yield curve in which there is little difference between shortterm ... 
Curve Steepener Trade
A strategy that uses derivatives to benefit from escalating yield ...
Related Articles

Investing
The Impact Of An Inverted Yield Curve
Find out what happens when shortterm interest rates exceed longterm rates. 
Investing
Understanding the Inverted Yield Curve
An inverted yield curve occurs during the rare times when shortterm interest rates are higher than longterm interest rates. 
Investing
Trade Bond ETFs Using Yield Curves
Different types of yield curves provide important insights for trading bondbased securities. 
Managing Wealth
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. 
Markets
Understanding Interest Rates Inflation And The Bond Market
Interest rates, bond yields and inflation expectations are all correlated. 
Markets
Bond Yield Curve Holds Predictive Powers
This measure can shed light on future economic activity, inflation levels and interest rates. 
Markets
Will an Inverted Yield Curve Happen Again?
Explore the causes of inverted yield curves, their frequency, their accuracy in forecasting recessions and whether this type of event can happen again. 
Markets
Goldman Sachs on the Real Cost of a Fed Hike (GS)
Learn why Goldman Sachs believes that aggressive Fed tightening would lead to $1 trillion in bond market losses, and why other market models disagree with the estimate. 
Markets
Understanding Term Structure of Interest Rates
The term structure of interest rates is a common method of valuing bonds. 
Markets
Understanding The Treasury Yield Curve Rates
Treasury yield curves are a leading indicator for the future state of the economy and interest rates.
RELATED FAQS

Why are the term structure of interest rates indicative of future interest rates?
Learn why economists believe the term structure for interest rates reflects investor expectations for future interest rates ... Read Answer >> 
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 >> 
What is the current yield curve and why is it important?
Understand what the current yield curve represents, and learn how market analysts commonly interpret various changes in the ... Read Answer >> 
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 >> 
What does the yield curve actually predict?
Find out what an inverted yield curve represents, how it has performed as a leading indicator and why it appears to hold ... Read Answer >> 
What are the different formations of yield curves?
Find out more about the yield curve and yield curve formations, what yield curves measure and the three main types of yield ... Read Answer >>