While the increase of sovereign yields at the short end is in line with the increased interest rate expectations, the increase of longer-term yields also reflects the discontinuation of net asset purchases, the gradual ageing of the portfolio, and some shortening of market expectations for the length of the reinvestment horizon.
[35] As asset purchases compress term premia more at the longend than at the short end, the de-compression of term premia resulting from reduced duration extraction, is estimated to be stronger at the long end also (Chart 13).