Commerzbank’s Rieger Likes Duration on the U.S. Curve

The video discusses the reversal of trends in US yields, highlighting the 10-year and 30-year yields. It explores the convergence of global yields, particularly in Europe, and the challenges faced by the Bank of Japan in managing its yield curve. The discussion also covers the increase in market volatility and the role of negative convexity hedging in flattening global curves, drawing parallels to past events in Europe. The potential for re-steepening of curves as markets stabilize is also considered.

What is the forecasted 10-year US Treasury yield mentioned in the video?

• 1.25%

• 2.50%

• 1.50%

• 2.00%

What challenge is the Bank of Japan facing according to the video?

• Controlling the yield curve

• Managing high inflation

• Increasing interest rates

• Reducing unemployment

How has the Bank of Japan's yield curve control affected the yen?

• It has weakened the yen

• It has strengthened the yen

• It has caused the yen to fluctuate wildly

• It has had no effect on the yen

What is the term used to describe the hedging strategy that has led to aggressive flattening of global curves?

• Interest rate swap

• Yield curve inversion

• Negative convexity hedging

• Positive convexity hedging

What historical event is compared to the current market situation in terms of yield curve flattening?

• The 2008 financial crisis

• The 2001 dot-com bubble

• The 1997 Asian financial crisis

• The 2016 Brexit vote