Term Premium on a 3 Year Zero Coupon Bond
This dataset tracks term premium on a 3 year zero coupon bond over time.
Latest Value
0.05
Year-over-Year Change
-55.57%
Date Range
1/2/1990 - 8/1/2025
Summary
The term premium on a 3-year zero coupon bond measures the extra yield investors demand to hold longer-term bonds compared to shorter-term bonds. It is an important indicator of market and investor expectations.
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 term premium represents the compensation that bond investors require for the additional risk of holding a longer-maturity bond. It reflects factors like inflation expectations, uncertainty, and liquidity preferences in the bond market.
Methodology
The term premium is calculated based on the difference between long-term and short-term interest rates.
Historical Context
The term premium provides insights into the bond market and can inform monetary policy decisions.
Key Facts
- The term premium is typically positive, reflecting the additional risk of holding longer-maturity bonds.
- Declining term premiums may signal increased demand for longer-dated bonds and lower expectations of future rate hikes.
- Tracking the term premium can provide insights into market sentiment and expectations about the future path of interest rates.
FAQs
Q: What does this economic trend measure?
A: The term premium on a 3-year zero coupon bond measures the extra yield that investors demand to hold a longer-term bond compared to a shorter-term bond.
Q: Why is this trend relevant for users or analysts?
A: The term premium is an important indicator of market expectations and risk preferences, providing insights into the bond market and informing monetary policy decisions.
Q: How is this data collected or calculated?
A: The term premium is calculated based on the difference between long-term and short-term interest rates.
Q: How is this trend used in economic policy?
A: The term premium on 3-year bonds can inform monetary policy decisions by the Federal Reserve and help analysts assess market expectations about future interest rate changes.
Q: Are there update delays or limitations?
A: The term premium data is updated regularly by the Federal Reserve and is generally considered a reliable and timely economic indicator.
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Similar THREEFYTP Trends
Term Premium on a 1 Year Zero Coupon Bond
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Term Premium on a 10 Year Zero Coupon Bond
THREEFYTP10
Term Premium on a 2 Year Zero Coupon Bond
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Term Premium on a 4 Year Zero Coupon Bond
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Term Premium on a 5 Year Zero Coupon Bond
THREEFYTP5
Term Premium on a 6 Year Zero Coupon Bond
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Citation
U.S. Federal Reserve, Term Premium on a 3 Year Zero Coupon Bond (THREEFYTP3), retrieved from FRED.