What's driving the rise in bond yields?

The part of a bond yield that can't be explained by policy interest rate expectations is called premia; it is thought of as compensating investors for holding bonds, particularly long-dated bonds, as opposed to holding, a series of short-dated bonds. Its the risk premia or compensation for bond risks that investors demand. This distinction is important because the latest leg of the Treasury market sell-off over the past couple of months, has been primarily driven by changes to the term premia, as opposed to the sell-off earlier in the summer which was driven by changing expectations of central...