Yield Plunge Moves Treasuries Closer to 1% Threshold

The transcript discusses the impact of the delta variant on economic recovery, focusing on U.S. Treasury yields and their potential future levels. It highlights the importance of considering global factors, such as supply chain issues, which could lead to inflation and affect domestic growth. The discussion also covers the fair value of yields and market dynamics, emphasizing the influence of flight to quality flows.

What was the initial yield level that was being monitored before it broke below?

• 1.18%

• 2.0%

• 1.5%

• 0.99%

What is the next yield level to watch for after breaking below 1.18%?

• 1.2%

• 1.5%

• 1.6%

• 0.99%

Why is it important to consider the economic recovery in a global context?

• Due to stable global markets

• Because of high domestic demand

• Due to potential supply chain issues

• Because domestic fundamentals are strong

What could be a consequence of supply chain problems in the US?

• Stable inflation rates

• Rising goods prices

• Increased domestic growth

• Decreased import costs

According to models, what is the fair value range for US Treasury yields?

• 1.5% to 1.6%

• 1.1% to 1.3%

• 2.0% to 2.5%

• 0.5% to 1.0%