Bond Yields, Supply Cause the $400B Market Mismatch

Bond Yields, Supply Cause the $400B Market Mismatch

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Business

University

Hard

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The video discusses the high demand for bonds, which has surpassed supply multiple times in recent years, leading to persistently low yields. Despite discussions about the Fed raising interest rates and the end of quantitative easing, bond yields remain low due to high demand and limited supply. Concerns about liquidity arise if many investors try to exit simultaneously. Central banks like the ECB, Bank of Japan, and People's Bank of China play a significant role in maintaining demand.

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5 questions

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1.

OPEN ENDED QUESTION

3 mins • 1 pt

How has the demand for bonds changed in the past seven years?

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2.

OPEN ENDED QUESTION

3 mins • 1 pt

What has caused the shortfall of supply in the bond market according to the text?

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3.

OPEN ENDED QUESTION

3 mins • 1 pt

What is the bottom line regarding bond yields as mentioned in the text?

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4.

OPEN ENDED QUESTION

3 mins • 1 pt

What potential issue is raised concerning liquidity in the bond market?

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5.

OPEN ENDED QUESTION

3 mins • 1 pt

Which central banks are mentioned as potential buyers that could affect demand?

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