Instantaneous Forward Term Premium 1 Year Hence
THREEFFTP1 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.06
Year-over-Year Change
-48.29%
Date Range
10/4/2021 - 8/1/2025
Summary
The Instantaneous Forward Term Premium 1 Year Hence measures the compensation investors demand to hold long-term bonds instead of rolling over short-term bonds. It provides insight into market expectations and risk aversion.
Analysis & Context
This economic indicator provides valuable insights into current market conditions and economic trends. The data is updated regularly by the Federal Reserve and represents one of the most reliable sources for economic analysis.
Understanding this metric helps economists, policymakers, and investors make informed decisions about economic conditions and future trends. The interactive chart above allows you to explore historical patterns and identify key trends over time.
About This Dataset
This forward-looking interest rate measure represents the premium investors require to hold longer-term Treasuries versus shorter-term securities. It is used by economists and policymakers to gauge market sentiment and future monetary policy expectations.
Methodology
The data is calculated by the Federal Reserve based on the U.S. Treasury yield curve.
Historical Context
The forward term premium is a key indicator of market uncertainty and risk appetite that informs Federal Reserve decision-making.
Key Facts
- The forward term premium averaged 0.36% from 1990-2022.
- The measure reached a high of 1.34% in October 2022.
- Elevated term premiums signal greater market uncertainty.
FAQs
Q: What does this economic trend measure?
A: The Instantaneous Forward Term Premium 1 Year Hence measures the compensation investors demand to hold long-term bonds instead of rolling over short-term bonds.
Q: Why is this trend relevant for users or analysts?
A: This forward-looking measure provides insight into market expectations and risk aversion, informing analysis of monetary policy and bond market conditions.
Q: How is this data collected or calculated?
A: The data is calculated by the Federal Reserve based on the U.S. Treasury yield curve.
Q: How is this trend used in economic policy?
A: The forward term premium is a key indicator of market uncertainty and risk appetite that informs Federal Reserve decision-making on monetary policy.
Q: Are there update delays or limitations?
A: The data is published with a lag but provides a timely forward-looking view of market conditions.
Similar THREEFFTP Trends
Fitted Yield on a 6 Year Zero Coupon Bond
THREEFY6
Fitted Yield on a 1 Year Zero Coupon Bond
THREEFY1
Term Premium on a 1 Year Zero Coupon Bond
THREEFYTP1
Fitted Yield on a 5 Year Zero Coupon Bond
THREEFY5
Term Premium on a 2 Year Zero Coupon Bond
THREEFYTP2
Instantaneous Forward Term Premium 4 Years Hence
THREEFFTP4
Citation
U.S. Federal Reserve, Instantaneous Forward Term Premium 1 Year Hence (THREEFFTP1), retrieved from FRED.