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Why are Long-term Bond Yields so low?
Long-term bond yields in major advanced economies have fallen noticeably over the past six months. In many cases, yields are close to, or have reached, historic lows, and in some cases are negative (Graph B1). The most recent declines have been largely driven by cyclical factors: global growth has eased, many central banks have revised down their growth and inflation forecasts, and market participants have lowered their expectations for central bank policy rates.