What accounts for the recent rise in long-term interest rates?

The recent rise in long-term interest rates in the United States and to a lesser degree in the euro zone may in theory be explained by: Expectations of increases in central banks’ key interest rates; A rise in expected inflation; Fewer bond purchases by central banks; A fall in risk aversion. A statistical and econometric analysis shows that the recent rise in long-term interest rates results from: A rise in expected short-term interest rates in the United States; A rise in expected inflation in the United States and the euro zone. Given the outlook for inflation and monetary policies, long-term interest rates should be expected to stop rising at their current level.