BUS390 Explaining the Term Structure of US Daily Treasury Yield, Singapore

[A] What you need to do:

1. Download data and plot them (see “How to download data for the assignment” on page 2).
2. Use Expectation Theory, Market Segmentation Theory, and Liquidity Premium Theory (from Chapter 5) to explain the movements of the selected yield curves.

[B] Resources:

Chapter 5 from the essential text for this unit is the primary resource for this assignment; however, you will need to consult/research additional resources (newspaper, research articles, other books, etc.) to establish your argument in support of what you present in your essay.

[C] Structure:

Broadly, the essay should have three sections:

• A. Introduction
• B. Main Body of the Essay
• C. Conclusion

You can add sub-sections to the Main Body of the essay (Section B). All sections and sub-sections must be clearly labeled.

[D] Reference:

For reference, please follow Chicago referencing style. Please visit the following link for details: Chicago Referencing Guide.

[E] Word Limit:

The word limit of this essay is 2,000 with a 10%+/- allowable range.

[F] Formatting:

Use Times New Roman, font size 12, with 1.5 line spacing and 2.54 cm margins on each side. All plots and tables must be labeled appropriately.

[G] Academic Integrity:

You must read section 5.3 “Academic Integrity” in the Unit Outline carefully to ensure academic integrity in the preparation and submission of this assessment.

[H] Extension and Late Submission:

Please note that extensions and late submission policies have changed. The new policy states:

“Assessments submitted after the due date without approval will not be marked, and you will receive 0% for the assessment.”

[I] Others:

You must carefully read the Essay Checklist and Essay Marking Guide and prepare your essay accordingly. You must attach a Cover Sheet to your essay. The Cover Sheet, Essay Checklist, and Essay Marking Guide are available in the Assessment block of BUS390 LMS.

How to Download Data for the Assignment:

1. Go to www.treasury.gov.
2. Click DATA.
   
3. Click “Daily Treasury Par Yield Curve Rates”.
   
4. Download at least 2 years’ data (2023 & 2024); 1 year at a time using the “Download CSV” option.
   
5. Take at least 4 yield series of different maturities (e.g., 1, 2, 3, and 4 months; or 1, 2, 3, and 5 years; or 7, 10, 20, and 30 years, etc.).
6. Plot these yield series and analyze. Please see Figure 5.4 on page 138 of the essential text for an example.