BlackRock's Li: US Treasury Term Premia Has 'More to Go'

The video discusses the impact of a changing regime on Treasury yields, leading to historic losses. It explores the challenges in bond market investing and the return of income in bonds. The focus shifts to market dynamics through a repricing lens, highlighting the movement of basis points and the role of central banks. The video concludes with an analysis of term premium, bond volatility, and fiscal imbalance, emphasizing the need to be underweight in US long duration bonds.

What is the current challenge faced by bond portfolios according to the video?

• Increased equity market volatility

• Unprecedented consecutive years of losses

• Rising interest rates

• Decreased bond yields

Why should market dynamics be viewed through a repricing lens?

• Because equity markets are stable

• To better understand central bank policies

• To focus on concentrated equity markets

• To capture the movement of basis points

What has been the recent trend in term premium?

• It has decreased significantly

• It has remained stable

• It has become deeply negative

• It has started to return

In the context of the video, what does QT stand for?

• Quick Transaction

• Quality Trading

• Quantitative Tightening

• Quantitative Trading

What strategy is being employed regarding US long duration bonds?

• Aggressive buying

• Underweight

• Neutral

• Overweight