Chart 1
Federal Reserve Rate Hikes Led to a Flatter Yield Curve during 2004
Yield (Note: The yield refers to Treasury constant maturities.)
Time Period 3-Month U.S. Treasury 6-Month U.S. Treasury 1-Year U.S. Treasury 2-Year U.S. Treasury 3-Year U.S. Treasury 5-Year U.S. Treasury 7-Year U.S. Treasury 10-Year U.S. Treasury 20-Year U.S. Treasury
Year-end 2004 2.22 2.59 2.75 3.08 3.25 3.63 3.94 4.24 4.85
Year-end 2003 0.95 1.02 1.26 1.84 2.37 3.25 3.77 4.27 5.10
Mid-year 2004 1.33 1.68 2.09 2.70 3.16 3.81 4.24 4.62 5.33
Source: U.S. Treasury.