Source: https://mochatrade.com/learn/glossary/term-premium

# Term premium
URL: https://mochatrade.com/learn/glossary/term-premium
Last modified: 2026-10-17

The term premium is the extra yield investors demand to lend for ten years instead of rolling short bills, for the risk that rates or inflation surprise. It is why [the long end can rise while the Fed cuts](https://mochatrade.com/learn/us-market-structure/how-the-fed-moves-markets), and it climbs with [how much debt the Treasury issues](https://mochatrade.com/learn/us-market-structure/who-moves-us-stocks).

## Related terms

- Quantitative easing: https://mochatrade.com/learn/glossary/quantitative-easing
- Federal Reserve: https://mochatrade.com/learn/glossary/federal-reserve
- US Treasury: https://mochatrade.com/learn/glossary/us-treasury
- Quantitative tightening: https://mochatrade.com/learn/glossary/quantitative-tightening
- Market cap categories (mega/large/mid/small): https://mochatrade.com/learn/glossary/market-cap-categories
- Beta: https://mochatrade.com/learn/glossary/beta