US bond maturity premium rises to ten-year high, investors require higher returns.

As the market becomes increasingly concerned about the growing fiscal deficit of the world's largest economy, bond investors are demanding higher returns for holding US long-term bonds. The yield premium on the US 10-year Treasury - the additional return investors require for holding long-term bonds rather than a series of short-term bonds - has risen to close to 1%, the highest since 2014. This indicates investor concerns about the planned increase in future borrowing. "The current danger is that this fiscal phenomenon will reinforce itself," Ella Hoxha, head of fixed income at Newton Investment Management, said in an interview with Bloomberg TV. "This should be of concern, especially for risk assets, and of course for policymakers as well, as they will have to finance at higher interest rate levels."