Add to ORKGIn June of 2004 the Fed began relentlessly tightening policy. They raised the Federal Funds Target (Target) from 1% to 5 1/4% in 1/4% increments at seventeen consecutive meetings. While short rates dutifully followed the Target up, long maturity rates actually fell. Alan Greenspan in 2005 Congressional testimony labeled the strange behavior of the spread between long rates and the Target a "conundrum". This paper examines the conundrum. We present robust empirical evidence that the increase in foreign holdings of US Treasury bonds explains more than half of the decline in long maturity rates. Foreign holdings of US Treasury debt with a maturity over one year grew from 20% in 1994 to 57% in 2007
In recent years, US and euro area long-term bond yields experienced a remarkable decline and remaine...
Long-term Treasuries, which sold to yield 5.75 percent in October, now return about 6.75 percent. Th...
We analyse if and to what extent fundamental macroeconomic factors, temporary influences or more str...
In June of 2004 the Fed began relentlessly tightening policy. They raised the Federal Funds Target (...
In congressional testimony on February 16, 2005, Federal Reserve Chairman Greenspan characterized th...
In 2004 and 2005, long-term interest rates remained remarkably low despite improving economic condit...
Long-term interest rates tend to rise as monetary policymakers increase short-term interest rates. T...
From 2004 to 2006, the FOMC raised the target federal funds rate by 4.25%, yet long-maturity yields ...
Entre 2004 et 2006, alors que la banque centrale américaine a augmenté ses taux directeurs à chaque ...
Cömert investigates the relationship between overnight interest rates and the long-term rates in the...
From 2001 to 2006, U.S. long-term interest rates have remained steady while the federal funds rate h...
Although the federal funds rate started rising from mid-2004 US long term rates continued to fall. ...
This decline in mortgage inter-est rates mirrored a fall in the 10-year Treasury bond yield (the int...
Although the federal funds rate started rising from mid-2004 US long term rates continued to fall. A...
A major puzzle in financial economics is the apparent drastic inconsis-tency of U.S. data with the e...
In recent years, US and euro area long-term bond yields experienced a remarkable decline and remaine...
Long-term Treasuries, which sold to yield 5.75 percent in October, now return about 6.75 percent. Th...
We analyse if and to what extent fundamental macroeconomic factors, temporary influences or more str...
In June of 2004 the Fed began relentlessly tightening policy. They raised the Federal Funds Target (...
In congressional testimony on February 16, 2005, Federal Reserve Chairman Greenspan characterized th...
In 2004 and 2005, long-term interest rates remained remarkably low despite improving economic condit...
Long-term interest rates tend to rise as monetary policymakers increase short-term interest rates. T...
From 2004 to 2006, the FOMC raised the target federal funds rate by 4.25%, yet long-maturity yields ...
Entre 2004 et 2006, alors que la banque centrale américaine a augmenté ses taux directeurs à chaque ...
Cömert investigates the relationship between overnight interest rates and the long-term rates in the...
From 2001 to 2006, U.S. long-term interest rates have remained steady while the federal funds rate h...
Although the federal funds rate started rising from mid-2004 US long term rates continued to fall. ...
This decline in mortgage inter-est rates mirrored a fall in the 10-year Treasury bond yield (the int...
Although the federal funds rate started rising from mid-2004 US long term rates continued to fall. A...
A major puzzle in financial economics is the apparent drastic inconsis-tency of U.S. data with the e...
In recent years, US and euro area long-term bond yields experienced a remarkable decline and remaine...
Long-term Treasuries, which sold to yield 5.75 percent in October, now return about 6.75 percent. Th...
We analyse if and to what extent fundamental macroeconomic factors, temporary influences or more str...