Regulations now require many financial institutions to hold more safe, highquality liquid assets, which likely has pushed down term premiums further. Global factors may have put downward pressure on term premiums because of anxiety about the foreign outlook, which may have increased demand for U.S. assets, or because low rates abroad have depressed U.S. term premiums through a global portfolio balance channel.
Finally, before I forget, the Central Bank has also revised the $ bank note back to paper note. This is due to the disappointing experience we have with the polymer, a polypropylene plastic. While the plastic is durable, as you will all have experienced, the colour does not survive its expected life in circulation, which is costly to the economy.