Asynchronous monetary policies drive global yield curve shifts, impacting interest rates.
The article looks at how unconventional monetary policies in the US, euro area, UK, and Japan affect each other and the yield curve. By analyzing futures data, the study shows that these policies impact each other more during unconventional times and when policies are not synchronized. The Federal Reserve's actions have a lasting impact, while others fade quickly. These spillovers lead to changes in expected interest rates and risk compensation, especially when interest rates are low.