BIS paper links long-term rates decline to FOMC meetings
Study finds 70% of drop in rates in G10 countries is due to market moves close to Fed meetings
The decline in long-term interest rates in many advanced economies is closely linked to monetary policy decisions by the US Federal Reserve, a paper published by the Bank for International Settlements finds.
Researchers have often attributed declining long-term rates over recent decades to structural factors such as falling productivity growth, the working paper notes. However, a recent study by the Bank of Italy found that most of the decline in long-term US Treasury yields had taken place close
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