Is the term premium rubbish?

Plus, the carbon premium.

[The increase in long-term yields] is really happening in term premiums, which is the compensation for holding longer-term securities, and not principally a function of the market looking at the [fed funds] rate, said Fed chair Jay Powell in a recent speech.
[The increase in long-term yields] is really happening in term premiums, which is the compensation for holding longer-term securities, and not principally a function of the market looking at the [fed funds] rate, said Fed chair Jay Powell in a recent speech.Foto: Kevin Dietsch/AFP/NTB
Publisert 22. October 2023, kl. 19.46Oppdatert 23. October 2023, kl. 14.05
Financial TimesFinansObligasjonsmarkedetObligasjonerJerome Powell