Macroeconomic News and Real Interest Rates

Economic news affects the perceptions of investors, forecasters, and policymakers about the economy. The authors evaluate the responses of the yield of 10-year TIIS to nearly 3 dozen macroeconomic announcements and find that the real long-term interest rate responds to surprises in a handful of key macroeconomic indicators (e.g., labor productivity growth).


Keep up with what’s new and noteworthy at the St. Louis Fed. Sign up now to have this free monthly e-newsletter emailed to you.