SHORT ANSWER
The core idea
A bull flattener occurs when yields fall while longer-maturity yields decline more than shorter-maturity yields.
THE MECHANISM
What is happening underneath
It can emerge when investors become more concerned about long-run growth or inflation and buy duration aggressively.
MARKET INTERPRETATION
How investors should read it
The move combines higher bond prices with a flatter curve.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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