QIC's Morris on Bond Markets

The video discusses recent trends in the bond market, highlighting the impact of inflation and geopolitical tensions on bond yields. It provides a historical analysis of bond market movements, noting that losses are typically followed by positive returns. The role of central banks, particularly the Fed, in shaping monetary policy is examined, with a focus on their response to market pressures. The video concludes by identifying emerging value in bond markets, especially in Australia, where bond yields are becoming more attractive to investors.

What recent geopolitical event has contributed to the further impetus to inflation?

• US-China Trade War

• Brexit

• Middle East Conflicts

• Tensions in Ukraine

Historically, how long do bond market downturns typically last?

• Three months

• Two years

• One year

• Six months

What is the current relationship between the bond market and the Fed's monetary policy?

• The bond market is forcing the Fed to tighten

• The Fed is ignoring the bond market

• The Fed is aligned with the bond market

• The bond market is loosening the Fed's policy

What is the current yield on the Australian ten-year bond?

• 4%

• 3%

• 5%

• 2%

Why should investors reconsider the fixed income market now?

• Due to market stability

• Because of attractive yields

• Because of high inflation

• Due to low yields