Latest / Monetary Policy Explained with Fexingo: Central Banks, Money Supply, and Interest Rates
Why Central Banks Are Watching the Term Premium Again
Episode 126 of Monetary Policy Explained with Fexingo: Lucas and Luna break down the term premium — the extra yield investors demand for holding long-term bonds — and why central banks from the Fed to the ECB are obsessing over it in mid-2026. They walk through the term premium's rise from negative territory during quantitative easing to about 40 basis points today, using the ten-year US Treasury as the anchor case. Lucas explains how the term premium signals bond market stress, fiscal confidence, and the limits of rate policy, while Luna pushes on whether the term premium is a reliable…
The skinny
The skinny isn't ready yet — notes appear once the transcript is processed.