This phenomenon occurs when interest rates for bonds of different maturities become increasingly close to each other, resulting in a flat or nearly flat yield curve. This means there is little difference between short- and long-term interest rates for bonds of similar quality. A flattening yield curve can have several causes, such as declining inflation expectations or the expectation of slower economic growth.

It is an important indicator for financial markets, as it is often seen as a signal that the economy may be slowing down.

In finance, this is often referred to as a flattening yield curve in English. It can also be a harbinger of an inverted yield curve, which is sometimes considered an indication of an approaching recession.