HSBC's Major Sees Most Value in Long End of US Curve

The video discusses the current value in the US curve, focusing on the long end, particularly the 30-year treasuries. It explains how the Fed's rate hikes impact the curve, with the 30-year being driven by the peak rate in the cycle. The discussion includes the potential for future trade strategies, such as receiving the two to five year segment, considering recession risks and market dynamics. Holding 30-year treasuries is suggested as a safe option.

What part of the US yield curve is currently considered to have the most value?

• The entire curve

• The short end

• The middle segment

• The long end

What drives the 30-year treasuries according to the discussion?

• The unemployment rate

• The stock market performance

• The peak rate in the cycle

• The current inflation rate

How does the speed of rate hikes affect the yield curve?

• It stabilizes the entire curve

• It only affects the long end

• It moves the front end

• It has no effect

What is the suggested future strategy regarding the yield curve?

• Focus on international markets

• Invest in short-term bonds

• Avoid the bond market

• Start receiving in the two to five-year segment

Why might holding 30-year treasuries be considered a safe option?

• They are unaffected by market changes

• They are resilient to rate hike changes

• They offer the highest returns

• They are government-backed