The yield on U.S. Treasuries in late 2023:

a. Go to the FRED database and download a graph showing the yield on 10-year U.S. Treasuries since 2000 (use the series that shows the market yield, quoted on an investment basis). Use monthly data from 1955 to the present. Attach the graph to your assignment.

b. Describe your graph: i. What is the yield on U.S. Treasuries in Sept 2023? ii. In what month and year was the yield on U.S. Treasuries last this high? iii. In 1-2 sentences, describe what your graph. In your answer, put the current level of Treasury yields in both recent context (e.g. post 2010) and longerterm historical context.

c. What are possible macroeconomic implications of this increase in rates? (1-2 sentences).

d. List three reasons why U.S. Treasury rates may have risen in recent months. Use the article Hiring is rising along with rates, are they on a collision course?, which we read in class and which is posted under Week 6 materials on Blackboard.

e. Pick one of these three reasons from (d) and use the graphical bond market model to show why it makes interest rates rise.