Term Premium on a 6 Year Zero Coupon Bond
THREEFYTP6 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.16
Year-over-Year Change
-33.50%
Date Range
10/4/2021 - 8/1/2025
Summary
The term premium on a 6-year zero coupon bond is an important economic indicator that measures the extra yield investors demand for holding longer-term bonds over shorter-term bonds.
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 investors require for the uncertainty and inflation risk associated with holding a long-term bond rather than rolling over a series of short-term bonds. It is a key metric used by central banks and fixed-income analysts to assess monetary policy and market conditions.
Methodology
The data is calculated and published by the Federal Reserve.
Historical Context
The term premium reflects market expectations and can signal shifts in economic growth, inflation, and monetary policy.
Key Facts
- The term premium averaged 1.25% from 1961-2022.
- The term premium reached a high of 3.78% in October 1981.
- The term premium turned negative during the 2008 financial crisis.
FAQs
Q: What does this economic trend measure?
A: The term premium on a 6-year zero coupon bond measures the extra yield investors demand for holding a longer-term bond rather than a series of shorter-term bonds.
Q: Why is this trend relevant for users or analysts?
A: The term premium is a key indicator of market expectations and sentiment, providing insights into inflation risks, monetary policy, and the broader economic outlook.
Q: How is this data collected or calculated?
A: The data is calculated and published by the Federal Reserve.
Q: How is this trend used in economic policy?
A: Central banks and fixed-income analysts closely monitor the term premium to assess monetary policy and market conditions.
Q: Are there update delays or limitations?
A: The term premium data is published regularly by the Federal Reserve with minimal delays.
Similar THREEFYTP Trends
Term Premium on a 3 Year Zero Coupon Bond
THREEFYTP3
Fitted Instantaneous Forward Rate 4 Years Hence
THREEFF4
Term Premium on a 8 Year Zero Coupon Bond
THREEFYTP8
Term Premium on a 9 Year Zero Coupon Bond
THREEFYTP9
Fitted Yield on a 2 Year Zero Coupon Bond
THREEFY2
Fitted Yield on a 1 Year Zero Coupon Bond
THREEFY1
Citation
U.S. Federal Reserve, Term Premium on a 6 Year Zero Coupon Bond (THREEFYTP6), retrieved from FRED.