Sunday, August 7, 2016

interest - How is the spread between the US-10 T-bond and the Fed funds rate determined?


In 2015 the Fed funds rate was 0.24%, while the US Treaury 10-year government bond was 2.24%.


How is the spread determined? Is there a formula to determine the spread of the US-10 T-bond and the Fed funds rate?




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