Homework-1 The following graph shows the yield curves drawn for 18th of November and 20th of November. In its meeting on November 20, Central Bank of the Republic of Turkey (CBRT) increased the policy rate by 4.75 percentage points. The following graph shows that 3-year, 5-year and 10-year bond yields decreased on the same day. Based on your knowledge about the term structure of interest rates, explain why bond yields declined when the CBRT increased the policy rate. Yield Curves on Nov 18 and Nov-20 13.5 13 12.5 12 11.5 11 0 2 4 8 10 12 Nov.18 -Nov-20