The response to target rate increases was positive and significant at all maturities, but smaller at the long end of the yield curve: a one percentage point increase in the Fed funds target led to an increase of 55 basis points in the three-month T-bill rate, but only a 10 basis point increase in the 30-year bond yield. Recognizing that some Fed actions may have been anticipated, Cook and Hahn also examined the relationship between changes in interest rates and future changes in the target. They found little evidence that the target rate changes were anticipated at a one- to two-day horizon, however
