B · Normal
[Bank of America Strategist: The bond bear market is mainly driven by term premiums] On October 7, Bank of America stated in a report that since mid-September, rising term premiums have driven higher mid- and long-term bond yields in developed markets. The term premium is the additional yield required by investors to hold long-term bonds. The main thing driving yields higher previously was expectations of interest rate hikes. The rise in medium- and long-term bond yields since around mid-September has been driven primarily by term premiums.
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