Eugene Trostin - Latest

• The rise in the Canadian term premium in a global context

  

  Sparks at Bank article Eugene Trostin, James Ketcheson, Antonio Diez de los Rios

  In Canada and abroad, yields on long-term government bonds have stayed high even as policy interest rates have fallen. This is due to rising term premiums―the extra compensation investors demand for holding these bonds. A key factor driving higher term premiums is global concerns about the ability of markets to absorb substantial amounts of government debt.

  Content Type(s): Staff research, Sparks at Bank article Research Theme(s): Financial markets and funds management, International markets and currencies, Market functioning, Monetary policy, Monetary policy framework and transmission