Bloomberg Surveillance · Wednesday, September 2, 2026
Torsten Slocke of Apollo observes that the U.S. term premium is currently lower than in Japan and Germany, suggesting less concern about U.S. policymaking compared to those nations. He notes that while U.S. rates are influenced by Fed expectations and term premium, the latter has remained relatively stable, indicating consistent credibility for both the Fed and fiscal policy over the past year.
“And in fact the term premium for the U.S. is lower than where it is for Japan and Germany, telling you that there's actually fewer worries about U.S. policymaking in the U.S. than there is in Japan and in Germany.”
“So in that sense, the Fed could undermine the term premium and push it higher. But at this point, there's just nothing suggesting that that's what's happening.”