Steepening of the Yield Curve Love Machine 16 years ago Steepening of the Yield Curve When the difference or spread between yield on a short term treasury and a long term one increases, the yield curve steepens. This is in contrast to the yield curve becoming flatter when the spread between these two yields decreases. Random Finance Terms for the Letter S Statement of Financial Accounting Standards No. 8 Statement of Financial Accounting Standards No. 52 Static Theory of Capital Structure Statutory Surplus Steady State Steepening of the Yield Curve Step-Up Step-Up Bond Sterilized Intervention Stochastic Models Recommended for you: Static Theory of Capital Structure Statement of Financial Accounting Standards No. 52 Stochastic Models Sterilized Intervention