What is the exact mechanism by which Fed Funds Rate affect Long-Term treasuries and Short-Term Treasuries

SAbru's picture
Rank: Senior Chimp | 24

I am aware of the fact that short-term treasuries move in the unison with the Fed Funds Rate and that long-term do not, or at least to a far lesser extent. However, I cannot find a clear explanation for this.

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Aug 12, 2018