What is it about term premiums? If you were to ask any Economist, they would tell you a term premium is the additional return a bond investor demands in order to lend money for a longer period of time. A premium for more term. Even the US government must pay. Should the government wish to sell, say, a three-year note, whomever is buying it will demand some additional yield above what the government offers on a two-year security.
It sounds simple and straightforward, easily intuitive.
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