Interesting article that explains one of the reasons why the risk premia on long term bonds can be negative. If bonds rise when equities fall (a big if), investors may buy bonds as hedging instruments. This article shows that 10-year bonds are better heddging tools than 2-year bonds. In other words, when we compare two hedging instruments, the more volatile, the better! Risks and volatilities are two rather different concepts (see also our discussion of the current duration risk premia).