An upward movement in the 10-year bond yield from say, 6 to 7 per cent could indicate an increase in inflation expectations over the long term.

Question

Quizplus · Accepted Answer

When bond yields rise, it generally indicates that investors are expecting higher inflation in the future. This could be due to various factors such as increased government spending or economic growth. An upward movement in the 10-year bond yield from 6 to 7 per cent therefore suggests that investors are anticipating higher inflation over the long term.

An Upward Movement in the 10-Year Bond Yield from Say