3-Month Government Bond Yield
Long-term interest rates refer to government bonds maturing in ten years. Rates are mainly determined by the price charged by the lender, the risk from the borrower and the fall in the capital value. Long-term interest rates are generally averages of daily rates, measured as a percentage. These interest rates are implied by the prices at which the government bonds are traded on financial markets, not the interest rates at which the loans were issued.
In all cases, they refer to bonds whose capital repayment is guaranteed by governments. Long-term interest rates are one of the determinants of business investment. Low long term interest rates encourage investment in new equipment and high interest rates discourage it. Investment is, in turn, a major source of economic growth.
See definition: https://data.oecd.org/interest/long-term-interest-rates.htm
Short-term interest rates are the rates at which short-term borrowings are effected between financial institutions or the rate at which short-term government paper is issued or traded in the market. Short-term interest rates are generally averages of daily rates, measured as a percentage.
Short-term interest rates are based on three-month money market rates where available. Typical standardised names are “money market rate” and “treasury bill rate”.
See definition: https://data.oecd.org/interest/short-term-interest-rates.htm
Also known as: treasury yield, bond yield by maturity.
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Calculate the 3-Month Government Bond Yield in Python
The 3-Month Government Bond Yield is available in the Fixed Income module of the open-source Finance Toolkit. Install it with:
pip install financetoolkit -U
Then call get_government_bond_yield as shown below.
from financetoolkit import FixedIncome
fixedincome = FixedIncome(start_date='2023-05-01', end_date='2023-12-31')
long_term_interest_rate = fixedincome.get_government_bond_yield(short_term=False, period='monthly')
long_term_interest_rate.loc[:, ['Japan', 'United States', 'Brazil']]
Which returns:
| Japan | United States | Brazil | |
|---|---|---|---|
| 2023-05 | 0.0043 | 0.0357 | 0.0728 |
| 2023-06 | 0.004 | 0.0375 | 0.0728 |
| 2023-07 | 0.0059 | 0.039 | 0.07 |
| 2023-08 | 0.0064 | 0.0417 | 0.07 |
| 2023-09 | 0.0076 | 0.0438 | 0.07 |
| 2023-10 | 0.0095 | 0.048 | 0.0655 |
| 2023-11 | 0.0066 | 0.045 | 0.0655 |
Parameters
get_government_bond_yield accepts the following parameters:
- short_term (bool, optional): Whether to return the short-term interest rate. Defaults to False. This means that the long-term interest rate will be returned.
- period (str | None, optional): Whether to return the monthly, quarterly or the annual data.
- growth (bool, optional): Whether to return the growth data or the actual data.
- lag (int, optional): The number of periods to lag the data by.
- rounding (int | None, optional): The number of decimals to round the results to. Defaults to None.
- standardize (bool, optional): Whether to standardize (Z-Score) the result. When combined with growth=True, standardizes the growth values instead of the raw values. Defaults to False.
Related Government Bonds
The Fixed Income module page introduces the module, and the sidebar lists all of its functions.