The following is from an article in the Wall Street Journal, describing events in the market for Treasury securities on the given day:” Treasury prices were mixed, with the shorter end of the yield curve rising and the longer- dated Treasury’s falling in prices”.
a. Draw Treasury yield curve, showing the situation on that day as described in the sentence above.
b. Explain verbally why prices of Treasury were mixed with the shorter end of the yield curve rising and the longer- dated Treasury falling in prices.