However, the factors determining long-term rates, notably those at the very long end of the term structure, are mostly associated with the premium to compensate for expected inflation and for the risk that inflation might vary widely over those horizons.
Therefore, if the policy tightening is perceived as an effective action to restore or preserve conditions of price stability, then a hike in short-term rates does not necessarily suggest a rise in market rates on instruments with very long maturities.