SHORT ANSWER
The core idea
The yield curve steepens when the gap between long- and short-term yields increases. This can happen because short yields fall faster, long yields rise faster, or both.
THE MECHANISM
What is happening underneath
A bull steepener often accompanies expectations of policy easing, while a bear steepener can reflect stronger growth, inflation, fiscal supply or rising term premium.
MARKET INTERPRETATION
How investors should read it
The direction of yields matters as much as the change in slope.
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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