Explained: Why you should care as the US yield curve flattens further

The shape of the yield curve is a key metric investors watch as it impacts other asset prices, feeds through to banks' returns and has been an indicator of the economy.

The U.S. Treasury yield curve flattened further on Wednesday, as the Federal Reserve increased interest rates for the first time in three years and set out a path of tighter monetary policy to fight unabated inflation.

The shape of the yield curve is a key metric investors watch as it impacts other asset prices, feeds through to banks' returns and has been an indicator of how the economy will fare.

Recent moves have reflected investor worries over whether the Fed can tighten monetary policy to tame inflation without hurting economic growth. Here is a quick primer explaining what a steep, flat or