Instantaneous Forward Term Premium 7 Years Hence
This dataset tracks instantaneous forward term premium 7 years hence over time.
Latest Value
0.73
Year-over-Year Change
-15.14%
Date Range
1/2/1990 - 8/1/2025
Summary
The Instantaneous Forward Term Premium 7 Years Hence measures the compensation investors demand for holding long-term Treasury securities. This metric provides insight into market expectations and risk perceptions.
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
The Instantaneous Forward Term Premium 7 Years Hence represents the premium over the expected path of short-term interest rates that investors require to hold a 7-year Treasury security. It is a key indicator of fixed-income market conditions and investor behavior.
Methodology
The data is calculated based on U.S. Treasury yield curve models.
Historical Context
Policymakers and analysts use this metric to gauge market sentiment and expectations around future monetary policy.
Key Facts
- The term premium averaged 0.8 percentage points from 1990-2022.
- Elevated term premiums can signal heightened market uncertainty.
- Low or negative term premiums may indicate complacency about future rate hikes.
FAQs
Q: What does this economic trend measure?
A: The Instantaneous Forward Term Premium 7 Years Hence measures the extra return investors demand for holding a 7-year Treasury security over the expected path of short-term interest rates.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into market expectations and risk perceptions, which is valuable for policymakers, investors, and economists analyzing fixed-income markets and monetary policy.
Q: How is this data collected or calculated?
A: The data is calculated based on U.S. Treasury yield curve models maintained by the Federal Reserve.
Q: How is this trend used in economic policy?
A: Policymakers and analysts use this metric to gauge market sentiment and expectations around future monetary policy decisions.
Q: Are there update delays or limitations?
A: The data is published with a lag and may be subject to revisions by the Federal Reserve.
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Citation
U.S. Federal Reserve, Instantaneous Forward Term Premium 7 Years Hence (THREEFFTP7), retrieved from FRED.