PGIM's Tipp: Buy Treasuries If US Debt Crisis Gets Messy

What is the suggested short-term strategy for treasuries during a risk-off event?

• Selling treasuries

• Buying treasuries

• Holding treasuries

• Ignoring treasuries

Why might the long end of the yield curve underperform during a crisis?

• Due to increased demand for long-term bonds

• Because of inflation concerns

• Because of a flight to quality

• As a result of short-term interest rate hikes

What is the potential impact of unresolved short-term issues?

• They will only affect international markets

• They could result in significant outcomes

• They will have no impact on the economy

• They may lead to a stable economic environment

What might happen if the economic environment becomes less debt-driven?

• The Fed may maintain or increase rates

• Economic growth will stagnate

• The Fed may lower interest rates

• The yield curve will flatten

How might the Fed's actions affect the yield curve in a different economic environment?

• The yield curve will invert

• The yield curve will steepen

• The yield curve will remain unchanged

• There will be an upward adjustment in the belly of the yield curve