Michael is making a good point about term premiums. It's a bit of a technical term ,but it's another way of saying how much more should bonds yield over inflation? Term premiums have been quite low recently, probably due to the view inflation will fall. If inflation remains at 3% or higher and term premiums increase to more historical averages will take the 10 year yields higher. 5-6% is feasible.
Love these post interview summaries. Thanks Maggie!
So glad you find them useful Paul!!
Another great interview, thanks Maggie!
No one better on liquidity than Michael... Glad you enjoyed, Rich!
Nice interview!!
Glad you enjoyed it Charles - thanks for watching!
Michael is making a good point about term premiums. It's a bit of a technical term ,but it's another way of saying how much more should bonds yield over inflation? Term premiums have been quite low recently, probably due to the view inflation will fall. If inflation remains at 3% or higher and term premiums increase to more historical averages will take the 10 year yields higher. 5-6% is feasible.