NY Fed researchers explore long-term rate rise
Researchers at the Federal Reserve Bank of New York attribute the "sharp" rise in long-term Treasury yields almost entirely to a higher term premium.
The yield on 10-year Treasury bonds rose from 1.63% at the beginning of May to 2.74% on July 5, its highest level for two years. This prompted a bond market sell-off that resulted in cumulative losses of 11.3% for the securities' owners.
In an online post, Tobias Adrian and Michael Fleming ask whether this change is better explained by expectations
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