Investors are demanding even higher interest rates on long-term government bonds, because right now, there are a number of factors that could cause the value to fall.
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“A yield curve is really how the market is expecting Federal Reserve policy rates to evolve over time,” said Meghan Swiber at Bank of America Merrill Lynch.
“The bond market is often seen as the boring sibling to the stock market,” said Robin Wigglesworth. “I think that's completely wrong. It is the bedrock to the entire financial system.”