Can Yields Go Much Lower?

The video discusses the concept of lower bounds in interest rates, noting that zero is not necessarily the lowest point due to negative rates seen in Europe and Japan. It analyzes the targets for 30-year and 10-year Treasury yields, the impact of deflation on real yields, and the historical context of bond rallies. The flattening yield curve is examined, highlighting its implications for recessions and Fed policy. The video also explores the effects of yield curve changes on banks and lending, and compares stock dividends with Treasury yields, questioning the safety of stock dividends in the current economic climate.

What factors might influence whether yields will recover after reaching certain target numbers?

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How does deflation impact real yields on long-term treasuries?

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What are the implications of a flattening yield curve for banks?

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What does the comparison of 30-year Treasury yields to S&P 500 dividend yields suggest about investment strategies?

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In what ways might low yields indicate underlying economic problems?

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