Fed Funds vs. 10-Year Treasury: Why Long-Term Rates Diverge
Why do 10-year Treasury yields move opposite to Fed rate cuts? Learn how the Fed sets overnight rates while markets price inflation, growth, and term premium.
Why do 10-year Treasury yields move opposite to Fed rate cuts? Learn how the Fed sets overnight rates while markets price inflation, growth, and term premium.
Long-dated sovereign yields hit multi-year highs across the US, UK, Germany, and Japan in mid-August 2026 as buyers demand more term premium.
Term premium is the extra yield bonds pay beyond expected short rates. Here’s how the NY Fed measures it and what’s pushing it higher in 2026.