What Is a Bear Steepener

A bear steepener is the widening of the yield curve caused by long-term interest rates increasing at a faster rate than short-term rates.

What is a Steepener position?

A bull steepener is a change in the yield curve caused by short-term interest rates falling faster than long-term rates, resulting in a higher spread between the two rates. A bull steepener can be contrasted with a bull flattener or bear steepener.

What causes bear flattening?

That explains the “bear” part of the trade. The flattening occurs when shorter-dated securities see their prices weaken the most, increasing their yields at a faster pace than those at the long end. That compresses the spread between the two, flattening the curve overall.

Alexander Ross

Alexander Ross

Gaming, Esports & Interactive Media Writer

Alexander Ross has covered the video game industry for a decade, writing deep dives on game design, esports tournaments, VR developments, and gaming culture.

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