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Investors Want More Yield to Own Long-Term Treasury Debt

Por: MarketWatch Business August 27, 2023

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Various factors decide the payout on a 10-year note, but the term premium is a key element. It is basically the compensation, or added yield, that investors demand to hold a long-term bond rather than short-term debt. It reflects the possibility that unexpected economic developments or changes in monetary policy may alter the value of a bond or note. Long-dated debt is more sensitive to such changes than shorter-term securities. For the past... + full article



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