Bond Illusion Revealed as Treasury Yields Turn Negative

The video discusses the efficiency of markets and the challenges faced by foreign investors in US Treasurys due to increased costs of borrowing dollars and currency hedging. It highlights the potential decrease in foreign demand for US bonds and explores alternative investment options like derivatives and foreign bonds. The video also examines market dynamics, investor mandates, and the possibility of market self-correction, especially in light of strong job reports and potential rate hikes.

In what ways are investors looking to offset risks associated with US Treasurys?

What factors could lead to a change in the price of Treasurys in the future?