Term premium.

 

The term premium, or the extra payout that investors demand in return for the risks of owning 10-year Treasuries instead of just rolling over short-dated securities for the same amount of time.

How exactly to measure it varies. So do the explanations for its moves.

What’s not in question is that during the past few weeks it spiked to levels not seen in over a decade and drove the latest leg of the bond selloff that’s sent US Treasury yields to a 24-year high.

That term premium is essentially protection against unpredictable turns, ranging from geopolitical shocks to government fiscal crises, that could hit the market before long-term bonds come due.

Bloomberg 9 October 2026

https://www.bloomberg.com/news/articles/2026-10-09/wall-street-sees-an-ominous-sign-in-bond-market-s-latest-selloff


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