Bull Steepener

DEFINITION of 'Bull Steepener'

A change in the yield curve caused by short-term rates falling faster than long-term rates, resulting in a higher spread between the two rates.

BREAKING DOWN 'Bull Steepener'

A steepener differs from a flattener in that a steepener widens the yield curve while a flattener causes long-term and short-term 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 short-term rates, not long-term rates.

RELATED TERMS
  1. Bear Steepener

    A widening of the yield curve caused by long-term rates increasing ...
  2. Yield Curve Risk

    The risk of experiencing an adverse shift in market interest ...
  3. Bull Flattener

    A yield-rate environment in which long-term rates are decreasing ...
  4. Bear Flattener

    A yield-rate environment in which short-term interest rates are ...
  5. Flat Yield Curve

    A yield curve in which there is little difference between short-term ...
  6. Curve Steepener Trade

    A strategy that uses derivatives to benefit from escalating yield ...
Related Articles
  1. Investing

    The Impact Of An Inverted Yield Curve

    Find out what happens when short-term interest rates exceed long-term rates.
  2. Investing

    Understanding the Inverted Yield Curve

    An inverted yield curve occurs during the rare times when short-term interest rates are higher than long-term interest rates.
  3. Investing

    Trade Bond ETFs Using Yield Curves

    Different types of yield curves provide important insights for trading bond-based securities.
  4. 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.
  5. Markets

    Understanding Interest Rates Inflation And The Bond Market

    Interest rates, bond yields and inflation expectations are all correlated.
  6. Markets

    Bond Yield Curve Holds Predictive Powers

    This measure can shed light on future economic activity, inflation levels and interest rates.
  7. 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.
  8. 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.
  9. Markets

    Understanding Term Structure of Interest Rates

    The term structure of interest rates is a common method of valuing bonds.
  10. 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
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Hot Definitions
  1. Duration

    A measure of the sensitivity of the price (the value of principal) of a fixed-income investment to a change in interest rates. ...
  2. Dove

    An economic policy advisor who promotes monetary policies that involve the maintenance of low interest rates, believing that ...
  3. Cyclical Stock

    An equity security whose price is affected by ups and downs in the overall economy. Cyclical stocks typically relate to companies ...
  4. Front Running

    The unethical practice of a broker trading an equity based on information from the analyst department before his or her clients ...
  5. After-Hours Trading - AHT

    Trading after regular trading hours on the major exchanges. The increasing popularity of electronic communication networks ...
  6. Omnibus Account

    An account between two futures merchants (brokers). It involves the transaction of individual accounts which are combined ...
Trading Center