<p>Inflation forecast is higher in the US than the rest of countries. US here: <a href="https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/" rel="nofollow noreferrer">https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/</a> </p>

<p>Spain here: <a href="https://www.statista.com/statistics/271077/inflation-rate-in-spain/" rel="nofollow noreferrer">https://www.statista.com/statistics/271077/inflation-rate-in-spain/</a></p>

<p>Japan here: <a href="https://www.statista.com/statistics/270095/inflation-rate-in-japan/" rel="nofollow noreferrer">https://www.statista.com/statistics/270095/inflation-rate-in-japan/</a></p>

<p>UK here: <a href="https://www.statista.com/statistics/270384/inflation-rate-in-the-united-kingdom/" rel="nofollow noreferrer">https://www.statista.com/statistics/270384/inflation-rate-in-the-united-kingdom/</a></p>

<p>Because inflation is higher, central banks will raise interest rate higher. Long term rates are higher in consequence.</p>

CC BY-SA 4.0
2018-12-07T17:56:24.183Z
"Because inflation is higher, central banks will raise interest rate higher." Could you please elaborate on this point, or even better, back it up with some references?
Giskard
CC BY-SA 4.0
2018-12-13T21:51:29.833Z
Jon's answer is correct, but this is the most direct explanation to me. Regarding inflation, US's *real interest rates* may actually be lower (over the considered period of time) than Spain's and so on...
keepAlive
CC BY-SA 4.0
2018-12-07T14:32:55.690Z
2018-12-07T14:32:55.690Z
jms8163
<p>The Eurozone has lower interest rates right now as the Federal Reserve in the US has been steadily raising rates in the past two years. The EU is still in a period of low interest rates to encourage spending and spur economic growth/inflation and are only now beginning to eliminate Quantitative Easing. Both of these factors, the low rates and QE, lead to the EU in general having lower interest rates across the yield curve than the US. </p>

CC BY-SA 4.0
2018-12-06T22:47:00.400Z
2018-12-06T22:47:00.400Z
Jonathan Wu
<p>Take a look at the government bonds interest rates, <a href="https://www.marketwatch.com/" rel="nofollow noreferrer">https://www.marketwatch.com/</a>.</p>

<p>For the US is 2.9, and for Spain and UK are 1.5 and 1.1 respectively. Spain is an economy with high unemployment, a high deficit and debt and low growth. The UK is suffering through Brexit, massive uncertainty on its future. Meanwhile, the US solidly grows. </p>

<p>Why would investors charge more to the US, perhaps the most powerful country in the world, than to other countries? </p>

<government-debt><bonds><usa><eu>
Why is the ten year interest rate lower for Spain/UK bonds than for US?
HazellFR
# Why is the ten year interest rate lower for Spain/UK bonds than for US?

(Asked by: username_0 on 2018-12-06)

Take a look at the government bonds interest rates, <https://www.marketwatch.com/>.

For the US is 2.9, and for Spain and UK are 1.5 and 1.1 respectively. Spain is an economy with high unemployment, a high deficit and debt and low growth. The UK is suffering through Brexit, massive uncertainty on its future. Meanwhile, the US solidly grows.

Why would investors charge more to the US, perhaps the most powerful country in the world, than to other countries?

**Tags:** government-debt, bonds, usa, eu

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## 2 answers

### Answer by username_1 on 2018-12-07. Score: 2 | Accepted answer

Inflation forecast is higher in the US than the rest of countries. US here: <https://www.statista.com/statistics/244983/projected-inflation-rate-in-the-united-states/>

Spain here: <https://www.statista.com/statistics/271077/inflation-rate-in-spain/>

Japan here: <https://www.statista.com/statistics/270095/inflation-rate-in-japan/>

UK here: <https://www.statista.com/statistics/270384/inflation-rate-in-the-united-kingdom/>

Because inflation is higher, central banks will raise interest rate higher. Long term rates are higher in consequence.

> **Comments:**
> **username_2**: "Because inflation is higher, central banks will raise interest rate higher." Could you please elaborate on this point, or even better, back it up with some references?  
> **username_3**: Jon's answer is correct, but this is the most direct explanation to me. Regarding inflation, US's *real interest rates* may actually be lower (over the considered period of time) than Spain's and so on...  

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### Answer by username_4 on 2018-12-06. Score: 1

The Eurozone has lower interest rates right now as the Federal Reserve in the US has been steadily raising rates in the past two years. The EU is still in a period of low interest rates to encourage spending and spur economic growth/inflation and are only now beginning to eliminate Quantitative Easing. Both of these factors, the low rates and QE, lead to the EU in general having lower interest rates across the yield curve than the US.


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