1.   If the curve steepens too much in coming months it could yet encourage Fed officials to raise interest rates.

2.   If the Fed keeps cutting rates, however, the yield curve probably would steepen and those options would become more valuable.

3.   The curve steepens when the difference between long term and short term interest rates increases.

4.   The yield curve steepened as investors shifted funds into safer short-term notes, traders said.

5.   The yield curve typically steepens when a growing number of investors expect the Fed to stand pat or even cut rates.