Why Are Global Rates Sinking?

The video discusses the current state of the bond market, highlighting factors such as capitulation, economic concerns, and liquidity issues. It examines the impact of global events like Ebola and weakening growth on market confidence. The European economy's struggles, including negative rates and record low yields, are also covered. In the US, technical factors and changes in the mortgage bond market are explored, with a focus on the potential effects on treasury yields and mortgage rates.

What is one of the reasons for the recent rally in the bond market?

• Strong retail numbers from the US

• Capitulation among bearish investors

• Increased trading volume

• Rising interest rates

Which factor is NOT mentioned as a concern affecting the bond market?

• Ebola outbreak

• Weakening growth

• High inflation

• Poor retail numbers

What is a significant issue in the European economy affecting the bond market?

• High inflation rates

• Record lows in safe haven currencies

• Strong economic growth

• Increased consumer spending

What technical factor is influencing the US bond market?

• Increased foreign investment

• Shortened mortgage bond durations

• Rising interest rates

• High trading volume

What remains uncertain about the future of treasury yields?

• Whether they could bounce back up with more trading

• If they will be affected by foreign markets

• If they will stabilize at current levels

• Whether they will continue to rise