Bull and bear curve moves
Definition · Level 8 · Rates, FX & macro
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Bear = yields up, bull = yields down; flattener = 2s10s falls, steepener = 2s10s rises. Bear flattener: both up, 2y more. Bull steepener: both down, 2y more. Bear steepener: both up, 10y more. Bull flattener: both down, 10y more.
Example
2y +18 bp, 10y +6 bp → bear flattener (2s10s −12 bp).
Where Tradecraft teaches it
Level 8 · Rates, FX & macro, in the lesson “The yield curve and real yields”: Read the curve, name its moves, and split a yield into inflation and real return.
Related terms
- 2s10sThe 10-year Treasury yield minus the 2-year yield, in bp: the headline gauge of curve slope.
- Breakeven inflationNominal Treasury yield minus the yield of the same-maturity inflation-linked Treasury (TIPS), i.e. the inflation rate at which both earn the same.
- Inverted yield curveShort-maturity Treasury yields above long-maturity ones, usually because policy is tight and cuts are expected.
- Real yieldReturn after inflation: roughly the nominal yield minus inflation (or expected inflation).
- Steepening / flatteningThe curve’s slope increasing (long yields rising relative to short ones, so 2s10s goes up) versus decreasing (2s10s goes down).
- TIPSTreasury Inflation-Protected Securities: principal is indexed to CPI (the consumer price index), so coupon payments and the final repayment rise…