How Central Banks Use the Term Premium to Gauge Market Sentiment

Failed to add items

Sorry, we are unable to add the item because your shopping cart is already at capacity.

Add to basket failed.

Please try again later

Add to wishlist failed.

Please try again later

Remove from wishlist failed.

Please try again later

Adding to library failed

Please try again

Follow podcast failed

Unfollow podcast failed

How Central Banks Use the Term Premium to Gauge Market Sentiment

Listen for free

View show details

In this episode of Monetary Policy Explained with Fexingo, Lucas and Luna unpack the term premium—the extra yield investors demand for holding long-term bonds over rolling short-term ones. They explore why this obscure metric spiked in 2021, how it reflects market fears about fiscal sustainability and inflation, and why Fed Chair Powell watches it as a signal of regime change. The hosts use the 2021 taper tantrum as a concrete case, showing how a compressed term premium can suddenly decompress, scrambling central bank communication. They also discuss how the term premium influences mortgage rates and corporate borrowing costs beyond Fed rate moves. A must-listen for anyone trying to understand bond market plumbing and central bank credibility. #TermPremium #CentralBanks #BondMarket #JeromePowell #FederalReserve #MonetaryPolicy #TaperTantrum #InflationRisk #FiscalDominance #YieldCurve #LongTermRates #MarketSentiment #Economics #FexingoBusiness #BusinessPodcast #InterestRates #BondInvesting #MacroEconomics Keep every episode free: buymeacoffee.com/fexingo

No reviews yet