U.S. 30-Year Bond Auction Draws Record Low Yield

U.S. 30-Year Bond Auction Draws Record Low Yield

Assessment

Interactive Video

Business

University

Hard

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The video discusses the U.S. government's sale of $16 billion in 30-year debt at record low yields, highlighting strong international and domestic demand for yield amidst rising deficits. It points to a negative economic outlook, with $14 trillion in negative yielding debt still present. The video also covers the increasing foreign demand for yield and the economic fragility noted by Dallas Fed President Robert Kaplan, who suggests the economy is in a fragile state. Domestic buyers are locking in yields to preserve cash, reflecting concerns over potential economic downturns.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the U.S. government's ability to sell 30-year debt at record low yields suggest?

A lack of interest in long-term investments

An increase in government spending

Strong international and domestic demand for yield

A decrease in national debt

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does the record low yield at the auction indicate about the economic outlook?

A positive economic growth forecast

An increase in consumer spending

A stable economic environment

A souring economic outlook

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the significance of the $14 trillion in negative yielding debt?

It suggests a decrease in foreign investment

It indicates a surplus in the economy

It shows a lack of demand for bonds

It highlights the search for positive yield

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What does Dallas Fed President Robert Kaplan say about the current economic period?

It is a period of rapid growth

It is a stable period with no risks

It is a fragile period that could go either way

It is a period of economic decline

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why are domestic buyers trying to lock in yields at current levels?

To reduce their investment portfolio

To increase their spending

To secure some return and preserve cash

To avoid future losses