Julia Wang, North Asia's chief investment officer at Nomura International Wealth Management, said in an interview that the recent sell-off of US Treasury bonds is logical from the perspective of maturity premiums. Given that term premiums have been compressed, particularly in the US, “long-term yields have risen and term premiums have become more normalized, this is actually logical and expected.” Wang said, “Investors won't want to hold these long-term bonds without repricing the maturity premium.” “Therefore, if we want to create a market for these long-term bonds, the yield must be higher.” “Seen from this perspective, this is not an act of panic, but a reasonable extension of what should happen during the current cycle phase.”

Julia Wang, North Asia's chief investment officer at Nomura International Wealth Management, said in an interview that the recent sell-off of US Treasury bonds is logical from the perspective of maturity premiums. Given that term premiums have been compressed, particularly in the US, “long-term yields have risen and term premiums have become more normalized, this is actually logical and expected.” Wang said, “Investors won't want to hold these long-term bonds without repricing the maturity premium.” “Therefore, if we want to create a market for these long-term bonds, the yield must be higher.” “Seen from this perspective, this is not an act of panic, but a reasonable extension of what should happen during the current cycle phase.”