Bill Gross Sees 'Relatively Mild' Bear Bond Cycle

The video discusses the Federal Reserve's position on real interest rates, comparing historical and current rates. It explores the Fed's target for the Fed funds rate in relation to inflation and market expectations. The discussion shifts to the dynamics of the yield curve, analyzing whether current trends indicate a fundamental shift or a temporary market reaction. The impact of inflation on longer-dated treasuries and the yield curve is also examined, suggesting a mild bear cycle with a positive curve.

What implications does a steeper yield curve have for the treasury market?

In what way does inflation influence the behavior of longer-dated treasuries compared to short-term rates?