STOCKS | Nomura International Wealth Management North Asia CIO Says U.S. Treasury Selloff Is Logical

Julia Wang, chief investment officer for North Asia at Nomura International Wealth Management, said the recent selloff in U.S. Treasuries is logical from the perspective of term premium. According to Sina Finance, she said long-term yields rising and term premium normalizing in the United States are “actually logical” and “expected,” adding that investors would not want to hold long-dated bonds without a repricing of term premium. Wang said yields must be higher to create a market for those long-dated bonds, and that the move is not panic but a reasonable extension of what should happen at this stage of the cycle.