Term Premium on a 9 Year Zero Coupon Bond
THREEFYTP9 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
0.38
Year-over-Year Change
-20.60%
Date Range
10/4/2021 - 8/1/2025
Summary
The Term Premium on a 9 Year Zero Coupon Bond is a measure of the additional yield that investors demand to hold longer-term fixed-income securities rather than a series of shorter-term securities.
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 that investors require to hold a 9-year zero-coupon bond compared to a series of shorter-term bonds. It provides insight into market expectations and risk perceptions, which are important factors for policymakers and market participants.
Methodology
The data is calculated by the Federal Reserve based on a model of the yield curve.
Historical Context
This metric is closely watched by central banks and analysts to gauge financial conditions and inflation expectations.
Key Facts
- The term premium averaged 1.78% from 1961 to 2022.
- The term premium reached a high of 5.25% in October 1981.
- The term premium turned negative during the financial crisis of 2008-2009.
FAQs
Q: What does this economic trend measure?
A: The Term Premium on a 9 Year Zero Coupon Bond measures the additional yield that investors demand to hold a longer-term fixed-income security rather than a series of shorter-term securities.
Q: Why is this trend relevant for users or analysts?
A: This metric provides insight into market expectations and risk perceptions, which are important factors for policymakers and market participants in assessing financial conditions and inflation expectations.
Q: How is this data collected or calculated?
A: The data is calculated by the Federal Reserve based on a model of the yield curve.
Q: How is this trend used in economic policy?
A: Central banks and analysts closely monitor this metric to gauge financial conditions and inflation expectations, which inform monetary policy decisions.
Q: Are there update delays or limitations?
A: The data is updated regularly by the Federal Reserve and is considered a reliable and timely indicator of market trends.
Similar THREEFYTP Trends
Fitted Yield on a 7 Year Zero Coupon Bond
THREEFY7
Fitted Instantaneous Forward Rate 3 Years Hence
THREEFF3
Instantaneous Forward Term Premium 9 Years Hence
THREEFFTP9
Term Premium on a 4 Year Zero Coupon Bond
THREEFYTP4
Fitted Yield on a 2 Year Zero Coupon Bond
THREEFY2
Fitted Yield on a 10 Year Zero Coupon Bond
THREEFY10
Citation
U.S. Federal Reserve, Term Premium on a 9 Year Zero Coupon Bond (THREEFYTP9), retrieved from FRED.