Long-term Treasury yields rose sharply in recent months, resulting in realized or mark-to-market losses for fixed-income investors.
In a post on the Federal Reserve Bank of New York blog, Liberty Street economics, authors Tobias Adrian and Michael Fleming put these losses in historical perspective.
In the piece, they "investigate whether the yield changes are better explained by expectations of higher short-term rates in the future or by investors demanding greater compensation for holding long-term Treasuries."
