30-Year Treasuries Yield at Highest Level Since 2011

30-Year Treasuries Yield at Highest Level Since 2011

Assessment

Interactive Video

Business

University

Hard

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The video discusses the recent trends in treasury yields, focusing on a 30-year auction that showed less demand than expected. Ira Jersey explains the market dynamics, highlighting the sensitivity of long-term bonds to interest rates and the impact of inflation on investment decisions. The discussion also covers alternative investment options like corporate bonds and mortgage-backed securities. The video concludes with an analysis of the auction's buyer mix, noting the role of primary dealers and indirect bidders.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a key reason for the cautious approach of investors during the recent 30-year treasury auction?

High inflation rates

Low interest rates

Strong economic growth

Market selling off

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might investors consider corporate bonds over 30-year treasuries?

Corporate bonds offer higher returns

Corporate bonds are less sensitive to interest rates

Corporate bonds are riskier

Corporate bonds have lower yields

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What was a notable change in the mix of buyers at the 30-year treasury auction?

Increased participation of foreign investors

Higher demand from primary dealers

More interest from retail investors

Lower participation of indirect bidders

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How did the lower participation of indirect bidders affect the auction results?

It reduced the number of bonds sold

It stabilized the market

It increased demand

It led to higher yields

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What role do primary dealers play in treasury auctions?

They set the interest rates

They are required to bid

They only buy bonds they want

They sell bonds to retail investors