On the rise in US long-term yields

Since the Fed cut its policy rate by 50bp on 18 September, the yield on federal bonds has risen by around 60bp. Does the bond market think the Fed made a mistake? And is this fundamentally abnormal? A third of this increase in long-term bond yields comes from higher expected inflation and two-thirds from a rise in the term premium (the excess return required on a long-term security, riskier by definition than a short-term one). The current period is ripe with uncertainties. Many ...