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U.S. Treasury term premiums, a measure of the compensation investors demand for holding long-term bonds, could shoot up again amid sticky inflation and rising fiscal deficits, U.S. bond asset... -February 29, 2024 at 04:32 pm EST - MarketScreener
U.S. Treasury term premiums, a measure of the compensation investors demand for holding long-term bonds, could shoot up again, PIMCO said
U.S. Treasury term premiums, a measure of the compensation investors demand for holding long-term bonds, could shoot up again amid sticky inflation and rising fiscal deficits, U.S. bond asset manager PIMCO said on Thursday. Term premiums, which can hurt assets such as stocks when they rise, have largely been suppressed for about a decade amid low interest rates that followed the 2007-2009 global financial crisis and the COVID-19 pandemic. "We are at a moment when the term premium could start to reverse the 40-year downtrend," Marc Seidner, chief investment officer of nontraditional...
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