Treasury Term Premium Surge Pushes Yields to 24-Year High

The term premium has risen to its highest level in more than a decade, fueling a new round of Treasury selling and pushing U.S. government bond yields to a 24-year high.

The term premium is the additional return investors demand to hold longer-term bonds instead of shorter-term debt. Its increase has added pressure to the Treasury market as yields have moved higher.

Macroeconomic uncertainty and increased bond supply have also contributed to the recent rise in the premium. The move suggests that pressure in the market for longer-dated Treasurys may continue.