30-Year US Auction Yield Highest Since 2011 - Best of Bloomberg Intelligence

The video discusses the recent 30-year treasury sale, highlighting the market dynamics and interest rate sensitivity that influenced investor behavior. It explores the impact of inflation on investment decisions and the sentiment that things might worsen. The discussion also covers alternative investments like corporate bonds and mortgage-backed securities. The video concludes with an analysis of the buyer mix at the auction, noting the role of primary dealers and indirect bidders.

Why are 30-year bonds more sensitive to interest rate changes compared to 10-year bonds?

• They have a longer duration.

• They are issued more frequently.

• They are less popular among investors.

• They have a higher yield.

What is one reason investors might hesitate to buy 30-year treasuries?

• They believe corporate bonds are riskier.

• They expect inflation to decrease significantly.

• They prefer the stability of short-term bonds.

• They are uncertain about future inflation rates.

What alternative investment is mentioned as being relatively cheap compared to its historical prices?

• Real estate

• Corporate bonds

• Mortgage-backed securities

• Gold

What was a notable change in the buyer mix during the recent 30-year treasury auction?

• Greater demand from corporate buyers

• Increased participation from foreign investors

• Higher involvement of primary dealers

• More bids from individual investors

Why might primary dealers end up with more bonds than they want?

• They are required to bid as part of their role.

• They are looking to diversify their portfolios.

• They have excess cash reserves.

• They anticipate a rise in bond prices.