The decline in the benchmark 10-year Treasury yield since early November has come amid a drop in term premium, according to Federal Reserve Bank of New York data through Nov. 29. The measure — a gauge of the extra yield compensation investors demand to own the maturity compared to rolling over a shorter-dated obligation over the same time period — has fallen as investors also scaled back their outlook for the pace of Fed tightening in 2019. Term premium is trading near its lowest since September, before the central bank’s last rate increase.
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