Instantaneous Forward Term Premium 9 Years Hence
THREEFFTP9 • Economic Data from Federal Reserve Economic Data (FRED)
Latest Value
1.11
Year-over-Year Change
-11.57%
Date Range
10/4/2021 - 8/1/2025
Summary
The Instantaneous Forward Term Premium 9 Years Hence measures the implied excess return that investors demand to hold longer-term over shorter-term U.S. Treasury securities. It is a key indicator of fixed income market sentiment and expectations.
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 9-year Treasury securities rather than a series of 1-year securities. It provides insights into the relative demand for long-term vs. short-term government debt, which is crucial for understanding the yield curve and policy impacts.
Methodology
The data is calculated by the Federal Reserve based on Treasury yield curve modeling.
Historical Context
This term premium is closely watched by policymakers, analysts, and investors to gauge financial conditions and inflation expectations.
Key Facts
- The term premium has averaged 1.7% since 1990.
- Historically low term premiums can signal tight financial conditions.
- Rising term premiums are associated with tightening monetary policy.
FAQs
Q: What does this economic trend measure?
A: The Instantaneous Forward Term Premium 9 Years Hence measures the extra yield that investors demand to hold longer-term Treasury securities compared to a series of shorter-term Treasuries.
Q: Why is this trend relevant for users or analysts?
A: This term premium is a crucial indicator of market sentiment and expectations around monetary policy and long-term interest rates, providing insights into fixed income market dynamics.
Q: How is this data collected or calculated?
A: The data is calculated by the Federal Reserve based on modeling of the Treasury yield curve.
Q: How is this trend used in economic policy?
A: Policymakers, economists, and investors closely monitor the term premium to gauge financial conditions, inflation expectations, and the potential impacts of monetary policy decisions.
Q: Are there update delays or limitations?
A: The data is published by the Federal Reserve with minimal delays, providing timely insights into fixed income market dynamics.
Related Trends
Fitted Instantaneous Forward Rate 1 Year Hence
THREEFF1
Fitted Yield on a 9 Year Zero Coupon Bond
THREEFY9
Fitted Instantaneous Forward Rate 8 Years Hence
THREEFF8
Fitted Yield on a 1 Year Zero Coupon Bond
THREEFY1
Fitted Yield on a 7 Year Zero Coupon Bond
THREEFY7
Fitted Instantaneous Forward Rate 3 Years Hence
THREEFF3
Citation
U.S. Federal Reserve, Instantaneous Forward Term Premium 9 Years Hence (THREEFFTP9), retrieved from FRED.