The Federal Reserve has yet to set a date for when it will begin to raise interest rates to normalize rates on the federal debt.
In the meantime, investors who buy Treasury bills or bonds from the Fed will pay a premium, as investors who hold those bonds also buy Treasury bonds.
That premium will increase each time the Fed begins to raise rates to the full range of its 2 percent target.
The benchmark 10-year Treasury bond is trading at a discount to its yield, which is a gauge of how much money investors are willing to lend.
As a result, Treasury bills and bonds have been selling at a steep discount to their yields in recent months.
Last week, the S&P 500 Index plunged more than 7 percent, sending Treasury bills plunging to record lows.
The S&s fell 1.5 percent Thursday, wiping out the gains from Thursday’s benchmark index.
The Dow Jones industrial average was down 7.9 percent.
Fed officials said Thursday they will begin the process of raising rates in March.
They expect to start the process on March 31.
The bond market has been buoyed by the Fed’s announcement in July that it will be raising rates, and by the recent uptick in Treasury yields.
The yield on Treasury bonds rose more than 3 percent over the past month.
Investors who buy Treasuries are paying a premium as they buy bonds from their government, which holds them.
The Fed buys bonds from banks and other institutions to help them raise money to buy goods and services.
Fed officials have said the Fed would not hold off on raising rates until the economy is in a stronger position to make them.
Since the election, investors have been buying Treasury bills at record highs.
The dollar has strengthened as a result of the election and the Fed announcement.
But the dollar is also down as a percentage of the value of the dollar compared with its value in early July, which has pushed up the cost of Treasurys.
Treasury rates are a way for Treasury holders to hedge their exposure to the currency market.
So far, Treasury rates have helped reduce inflation, but they are still volatile.
The S&ing is the benchmark 10 year Treasury bond, and the dollar index is the U.S. Treasury bond index.