Instantaneous Forward Term Premium 6 Years Hence
THREEFFTP6 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.53
Year-over-Year Change
-18.43%
Date Range
10/4/2021 - 8/1/2025
Summary
The Instantaneous Forward Term Premium 6 Years Hence measures the compensation investors demand for holding long-term government bonds. It provides insights into inflation expectations and market uncertainty.
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 trend represents the premium investors require to hold 6-year-ahead forward government bonds instead of shorter-maturity bonds. It is a key indicator of fixed-income market conditions and can signal shifts in economic growth and inflation outlooks.
Methodology
The data is calculated by the Federal Reserve using a dynamic term structure model of interest rates.
Historical Context
Policymakers and analysts closely monitor this metric to gauge financial market sentiment and long-term economic projections.
Key Facts
- The term premium has averaged 0.7% since 1990.
- Negative term premiums signal investor demand for long-duration assets.
- Spikes in the term premium often precede economic recessions.
FAQs
Q: What does this economic trend measure?
A: The Instantaneous Forward Term Premium 6 Years Hence measures the extra yield or 'premium' that investors demand to hold long-term government bonds versus shorter-maturity bonds.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insights into inflation expectations, economic growth prospects, and overall financial market sentiment. It is closely watched by policymakers and investors for signals about the economic outlook.
Q: How is this data collected or calculated?
A: The Federal Reserve calculates this series using a dynamic term structure model of interest rates.
Q: How is this trend used in economic policy?
A: Central banks and government analysts monitor the term premium to gauge market views on future inflation, growth, and monetary policy. Shifts in the term premium can inform policy decisions.
Q: Are there update delays or limitations?
A: The Instantaneous Forward Term Premium 6 Years Hence is updated monthly by the Federal Reserve. There may be revisions to historical data as the model is refined over time.
Similar THREEFFTP Trends
Fitted Yield on a 8 Year Zero Coupon Bond
THREEFY8
Instantaneous Forward Term Premium 2 Years Hence
THREEFFTP2
Instantaneous Forward Term Premium 5 Years Hence
THREEFFTP5
Fitted Yield on a 7 Year Zero Coupon Bond
THREEFY7
Term Premium on a 10 Year Zero Coupon Bond
THREEFYTP10
Term Premium on a 8 Year Zero Coupon Bond
THREEFYTP8
Citation
U.S. Federal Reserve, Instantaneous Forward Term Premium 6 Years Hence (THREEFFTP6), retrieved from FRED.