For more business and finance explainers, check out our Yahoo U page.
The market for U.S. government debt is among the largest, most liquid markets in the world. When yields on U.S. Treasuries move, so does everyone else.
Because investors generally perceive U.S. Treasuries to be risk-free assets, their yields serve as proxies for interest rates. When the U.S. 10-year (^TNX) or 30-year bond yield (^TYX) rises, so do loans (business loans, mortgages) of comparable duration.
For a central bank,…
Source link
