I believe that this increase in Treasury yields likely reflects a number of significant factors, including incoming information suggesting a somewhat stronger economic outlook and the fiscal package that was announced by President Obama in early December and approved by the Congress about two weeks later; that package will not only support economic growth next year but will also increase the amount of federal debt issuance.
These measures were instrumental in supporting the availability of credit for households and companies, in spite of the moderation in credit growth in a number of countries, and, ultimately, they also contributed to maintaining price stability. 3.