Why Are Long-Term US Yields Low?
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| Author(s): | Andersen, Allan Bødskov; Hydeskov, John; Sand, Michael |
| Subject: | Financial markets and financial stability; Financial stability; International Economy |
| Type: | Monetary review, 4th Quarter 2005, page 57-71 |
| Year of publication: | 2005 |
| Date of publication: | 12/01/2005 |
Since June 2004 the Fed Funds target rate has increased significantly, but nonetheless long-term yields have remained low. This article reviews four explanatory factors: greater stability in inflation rates, globalisation effects, low investments and increased demand for long-term bonds from pension companies and Asian central banks.
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