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.
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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.
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