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Barclays strategists Demi Hu and Anshul Pradhan said in a report that from a U.S. Treasury valuation perspective, high yields do not necessarily mean Treasuries are cheap. The two strategists said that if most of the yield reflects the market's expectations for short-term rates, investors receive less additional compensation for holding duration assets compared with instruments that roll over over a shorter investment horizon. "A higher term premium means higher compensation, but it also reflects greater uncertainty and duration risk," they said. They added that this distinction also affects the risks borne at different points along the yield curve. The two strategists said that if the recent monetary policy path is reassessed, the impact should mainly be concentrated in the front end and middle segment of the yield curve, namely the intermediate-maturity range; while if there is a sustained rise in the term premium or long-term neutral rate assumptions, it would put greater pressure on the longer end of the yield curve.