Yields Might Stay Higher for Longer: BlackRock's Watson

The video discusses the current state of the treasury market, focusing on the increased supply and decreased demand due to changes in the Federal Reserve's balance sheet and other economic factors. It highlights the impact of the US economic outlook on treasury yields and compares the current economic regime to pre-pandemic conditions, noting persistent inflation and geopolitical shifts.

What are the implications of the Fed's balance sheet management on the treasury market?

In what ways has the economic outlook shifted regarding a potential recession?