Markets Turmoil: Historic Move in Treasury Yields

The video discusses the role and importance of core bonds in the financial market, especially during crises. It highlights the historical trends of bond yields, the necessity of adjusting bond duration, and the surprising negative rates in European bonds. The video emphasizes that core bonds continue to fulfill their role by increasing in price when equities fall.

What has been a common misconception about bond yields historically?

• They can only increase.

• They are always stable.

• They cannot go any lower.

• They are irrelevant to the market.

During a world crisis, what strategy is suggested for bond duration?

• Lengthen the duration.

• Shorten the duration.

• Maintain the current duration.

• Ignore duration changes.

What surprising trend has been observed in European bonds?

• They have been unaffected by the crisis.

• They have reached positive rates.

• They have gone to negative rates.

• They have remained unchanged.

What role do core bonds play during equity market downturns?

• They decrease in price.

• They remain stable.

• They increase in price.

• They become irrelevant.

Why is it important to consider longer duration for core bonds?

• To decrease their price.

• To make them irrelevant.

• To increase their volatility.

• To maintain their current role.