Findings from Eastern Michigan University Provides New Data on Investment (The Convenience Yield Channel of Monetary Policy and International Stock Prices): Investment

2026 JUN 03 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Researchers detail new data in Investment. According to news reporting from Ypsilanti, Michigan, by NewsRx journalists, research stated, “Krishnamurthy and Lustig (2019) propose a convenience yield monetary policy channel, whereby Federal Reserve decisions affect global financial variables through their effect on the convenience yield of dollar-denominated safe assets.”

The news correspondents obtained a quote from the research from Eastern Michigan University, “We document that this channel contributes to the spillover of Fed policy to international stock markets. Following a surprise monetary tightening, the convenience yield differential between US Treasuries and equivalent foreign government bonds widens.”

According to the news reporters, the research concluded: “A monetary policy-induced increase in the convenience yield differential thus leads to a decline in international stock indexes.”

This research has been peer-reviewed.

For more information on this research see: The Convenience Yield Channel of Monetary Policy and International Stock Prices. Finance Research Letters, 2026;98. Finance Research Letters can be contacted at: Academic Press Inc Elsevier Science, 525 B St, Ste 1900, San Diego, CA 92101-4495, USA. (Elsevier - www.elsevier.com; Finance Research Letters - http://www.journals.elsevier.com/finance-research-letters/)

Our news journalists report that additional information may be obtained by contacting Matthew Schaffer, Eastern Michigan University, Ypsilanti, MI, United States. Additional authors for this research include M. Jahangir Alam and Md. Rashedur Rahman Sardar.

(Our reports deliver fact-based news of research and discoveries from around the world.)