Future Finance Fest (3f)
Amsterdam, The Netherlands • 5 June 2026
Conference Agenda
Overview and details of the sessions of this conference. Please select a date or location to show only sessions at that day or location. Please select a single session for detailed view (with abstracts and downloads if available).
|
Daily Overview |
| Session | ||
Session 212
| ||
| Presentations | ||
A Tale of Two Premiums: How Belief Disagreement Twists the Term Structure of Convenience Yield Imperial College London, United Kingdom We introduce a novel, high-frequency measure of belief disagreement derived from blockchain-based prediction markets (Polymarket) to investigate the determinants of the U.S. Treasury convenience yield. Unlike traditional volatility indices (VIX) or news-based proxies (EPU), our measure captures ``skin-in-the-game'' divergence in trader beliefs regarding specific political outcomes. We document a striking asymmetry in how political disagreement affects the demand for safe assets across the maturity spectrum. Shocks to political disagreement significantly compress the convenience yield on short-term Treasury bills, consistent with operational risk and liquidity deterioration, while simultaneously expanding the premium on long-term bonds, reflecting a ``flight-to-safety'' motive. Our findings demonstrate that political discord generates a ``twist'' in the safe asset curve—acting as a liquidity shock in the near term but a safety trigger in the long run—and highlight the utility of prediction markets in isolating \textit{ex-ante} uncertainty from media attention. | ||