As it applies to the term structure of interest rates of treasury yields, the bulk of the variation in short- and long-term interest rates is in the same direction. From this, we can conclude that ________.
1) Short-term interest rates are more volatile than long-term interest rates
2) Long-term interest rates are more volatile than short-term interest rates
3) Short-term and long-term interest rates move independently of each other
4) Short-term and long-term interest rates move in opposite directions