•  "The great moderation", lower volatility of output and inflation, has played an important role in reducing risk premia, in particular inflation risk premium. Central banks have clearly contributed to this by credibly anchoring inflation expectations.
•  Whether reflecting a "savings glut" or "monetary overhang", the ample global supply of funds – as reflected in the growth of monetary aggregates and their counterparties – has also contributed to lower long-term interest rates, as well as the compression of risk premia more generally.