What is the relationship between US Treasury bonds and the Fed's interest rate?

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What is the relationship between US Treasury bonds and the Fed's interest rate?

2006-09-05 14:39:29 · 3 answers · asked by charlesbrandon23 1 in Social Science ➔ Economics

3 answers

Typically, "the Fed's interest rate" (the correct technical term is "federal funds rate") follows the market interest rate for U.S treasury bills with a slight lag.

2006-09-06 05:00:32 · answer #1 · answered by NC 7 · 0⤊ 0⤋

The higher the interest rate the cheaper the bonds, the lower the rate the more expensive the bonds.

2006-09-05 14:44:54 · answer #2 · answered by Anonymous · 0⤊ 0⤋

No relationship...

2006-09-06 22:31:19 · answer #3 · answered by samdesign78 6 · 0⤊ 0⤋