Investec's Stopford Says Bond Market Term Premium Likely to Rise

The video discusses the concept of term premium in the US bond market, highlighting how markets are pricing in Federal Reserve actions but not fully accounting for supply-demand issues. Factors like additional supply, QE tapering, and market volatility are expected to raise term premiums. The potential impact on equities is considered, noting that equity markets can still rise in a rising rate environment unless the rate increase is sharp. The video also covers the pressure on short-term rates due to the Fed's interest rate hikes and the US focusing its supply on short-dated bonds.

In what way does the speaker suggest that market yields are being influenced by external factors?

What concerns are raised regarding short-term rates and the supply of bonds?