Figure 7
Line plot of 500-step ahead VIRFs for a family of bond price shocks, showing the median scenario VIRF and its dispersion range computed as 25% and 75% quantiles. A dashed line represents the median target VIRF, with simultaneous confidence intervals highlighted for comparison.

Predicted 500-step ahead VIRFs in response to a scenario family of 1% structural bond price shocks on the out-of-sample date January 2, 2015: median scenario VIRF (solid black line) with pointwise 25% and 75% quantiles (salmon background area) and corresponding median target VIRF (dashed green line) with asymptotic 95% confidence intervals, simultaneous across all VIRFs (dot-dashed blue). The system includes returns of the S&P 500, the yield of the US constant maturity 10-year Treasury note, and the USD Index.

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