Term premium is an incomplete economic concept used to explain yield curve slope; it assumes long bonds require higher yields simply for holding longer, but this does not explain inverted yield curves or why long-term rates move independently; market participants have heterogeneous expectations about growth and inflation at different curve maturities.
factualpending
Speaker
Jeff SniderEvidence Quote
“term premiums are nonsense...what we find is that bond yields behave independently”
Created: 8/12/2026, 10:39:49 PM
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