Term Premium Surge Drives Treasury Selloff, Yields Hit 24-Year High

The significance here lies less in the yield level itself than in its composition: a rising term premium signals that investors are demanding compensation for duration risk rather than simply pricing in near-term policy. That distinction matters for every borrower benchmarked to the long end, and it implies fiscal and supply concerns may now be doing as much work as rate expectations. Whether the term premium keeps widening without a corresponding move in policy expectations is the open question.