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Take a look at this plot, which is the daily American zero-coupon yield curve from 1975, as reconstructed by Liu and Wu (JFE, 2021): enter image description here

One can see a major change of shape in May, 1975. It seems that the important day was 14-15th May, 1975. I took a look on what happened that day and found no answer to explain such a big movement. There was a FOMC meeting during that month, but I believe it happened in the 20th.

Any ideas on what happened here?

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