Instantaneous Forward Term Premium 8 Years Hence
This dataset tracks instantaneous forward term premium 8 years hence over time.
Latest Value
0.92
Year-over-Year Change
-13.03%
Date Range
1/2/1990 - 8/1/2025
Summary
The Instantaneous Forward Term Premium 8 Years Hence measures the forward risk premium on 8-year Treasury securities. It provides insights into long-term inflation expectations and bond market conditions.
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 metric represents the compensation investors demand for holding long-term Treasury securities relative to short-term instruments. It is widely tracked by economists and policymakers to gauge inflation outlook and financial market sentiment.
Methodology
The data is calculated based on the yield curve for Treasury securities.
Historical Context
The term premium is a key indicator used by the Federal Reserve and other institutions to inform monetary policy decisions.
Key Facts
- The term premium averaged 1.7% from 1990 to 2022.
- Negative term premiums indicate a preference for long-term bonds.
- The metric reached a record low of -1.1% in 2012.
FAQs
Q: What does this economic trend measure?
A: The Instantaneous Forward Term Premium 8 Years Hence measures the compensation investors demand for holding long-term Treasury securities relative to short-term instruments.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insights into long-term inflation expectations and overall bond market conditions, which are closely monitored by economists and policymakers.
Q: How is this data collected or calculated?
A: The data is calculated based on the yield curve for Treasury securities.
Q: How is this trend used in economic policy?
A: The term premium is a key indicator used by the Federal Reserve and other institutions to inform monetary policy decisions.
Q: Are there update delays or limitations?
A: The data is updated regularly by the Federal Reserve with minimal delays.
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Instantaneous Forward Term Premium 1 Year Hence
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Instantaneous Forward Term Premium 2 Years Hence
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Instantaneous Forward Term Premium 3 Years Hence
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Instantaneous Forward Term Premium 4 Years Hence
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Instantaneous Forward Term Premium 5 Years Hence
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Citation
U.S. Federal Reserve, Instantaneous Forward Term Premium 8 Years Hence (THREEFFTP8), retrieved from FRED.