Which of the following is more likely to affect long-term bond yields?
A) announcement of the last year's inflation rate
B) announcement of this month's inflation rate
C) a forecast of next month's inflation rate
D) a forecast of inflation for the next five years

Question

Quizplus · Accepted Answer

Long-term bond yields are more sensitive to long-term inflation expectations, so a forecast of inflation for the next five years is more likely to affect them.

Which of the Following Is More Likely to Affect Long-Term