SHORT ANSWER
The core idea
Market yields are set through trading between buyers and sellers, while central banks directly set or target only specific policy rates and can influence broader yields.
THE MECHANISM
What is happening underneath
Government issuance, inflation expectations, growth, risk premia and investor demand all contribute.
MARKET INTERPRETATION
How investors should read it
The yield curve is therefore a market price shaped by policy but not simply dictated by one institution.
BONDSTATS TAKEAWAY
The same market move can carry different information depending on which maturity, issuer and risk premium is changing. Read the question together with the underlying concepts rather than treating one price move as a universal signal.
RELATED CONCEPTS
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