More strikingly, 10-year and 20-year real forward rates declined by 5 basis points and 9 basis points, respectively. BIS central bankers’ speeches  1  So what is going on? How, in a world of eventually flexible goods prices, is monetary policy able to exert such a powerful influence on long-term real rates?
A first clue is that the movements in distant forward real rates that we document appear to reflect changes in term premiums, as opposed to changes in expectations about short-term real rates far into the future.