Is a Reversal of the Term Premium Possible?

The term premium has plunged to be very negative or moved sideways, depending on the way you look at it. The Kim Wright measure finds that what the term premium basically bottomed during the March 2020 crash and has actually steadily recovered more recently. This year around June, it sort of came down a bit, but still higher than the previous low. So I think this more or less reflects the fact that we are seeing our normalization of term premium as we sort of see the economy recovery.