If the public debt is shortened in maturity the yield curve will tend to flatten out if positively sloped.

Name: If the public debt is shortened in maturity the yield curve will tend to flatten out if positively sloped.
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When the public debt is shortened in maturity, it increases the supply of short-term securities relative to long-term securities. This tends to raise short-term interest rates and lower long-term interest rates, making the yield curve flatter if it was initially positively sloped.

If the Public Debt Is Shortened in Maturity the Yield