Policy Rate
A policy rate is a central bank's target interest rate that influences broader borrowing costs and risk-free yield benchmarks.
Category
Macro and Rates
These terms are common in macro discussions and help connect risk-free yields to broader financial conditions.
How to recognize this theme
Words used to describe interest-rate markets and expectations.
In a daily board, this category groups terms by their shared role. Look for four cards that describe the same mechanism, risk area, or workflow rather than four words that merely sound similar.
Educational context
These entries are vocabulary notes for learning. They are not project endorsements, token recommendations, exchange rankings, or trading signals.
Duration
Duration is a measure of how sensitive a bond's price is to changes in interest rates, with longer duration generally implying higher sensitivity.
Term Premium
Term premium is the additional yield investors demand for holding longer-maturity bonds instead of rolling short-term debt, reflecting uncertainty over time.
Inflation Expectations
Inflation expectations describe what households and markets believe inflation will be in the future, which can influence wages, prices, and interest rates.