BIS central bankers’ speeches  5  Before examining this point, let me summarize factors that put upward and downward pressure on long-term interest rates. Long-term interest rates are formed based on expectations for future short-term interest rates and on risk premiums (Chart 18).
For example, in the case of 10-year government bond yield, this will be the sum of the short-term interest rate path for the next ten years and various risk premiums associated with holding government bonds.