Tag Archives: monetary tightening

Monetary Cycles and the Fixed Income Market – How Does the Slope Affect Returns?

In an earlier blog post, we provided a brief survey of recent monetary policy cycles in the U.S., showing that a higher Fed funds rate doesn’t necessarily affect the yield on Treasury bonds in the same way.  Policy rate changes affects short-term bond yields much more directly than longer-term yields (see Exhibit 1).  We argued Read more […]