Tag Archive | “long-term debt instruments”

Interest Rate Forecasting: Economic Indicators

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The monthly changes and the longer-term trend changes of economic indicators are able to influence the Interest rates on residential mortgages and US Treasury securities.

The rates on long-term debt instruments can be influenced by several kinds of variables, but in order to get the clues to the future direction of interest rates it is necessary to have an understanding of key economic indicators.
In most cases, on monthly basis economic reports are released.

economy2

Gross Domestic Product (GDP)

What is a GDP?

The gross domestic product (GDP) is the output of goods and services that are produced by labor in a property that is located in United States. The GDP is the most important economic indicator published.

Effects of GDP on Economy

If there is a larger-than-expected quarterly increase or increasing trend in the economy then it is considered inflationary. This thing urges the Fed to intervene and raise interest rates in order to slow growth.

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