Bond Market Carnage: Are U.S. Treasuries Oversold?

The video discusses the current state of the bond market, highlighting the oversold condition of Treasurys and the end of the secular bull market. It explores interest rate forecasts, with predictions of a rise in the 10-year yield. The video also examines credit valuations, noting that despite a drop in Treasurys, credit remains overvalued. Inflation expectations are influenced by global uncertainties, including political events. The video concludes with investment strategies, advising caution with sovereign bonds due to potential negative returns.

What does the RSI indicate about the current state of Treasurys?

• They are oversold.

• They are overbought.

• They are fairly valued.

• They are undervalued.

What is the consensus forecast for the 10-year yield by the end of next year?

• 2.0%

• 1.5%

• 2.54%

• 3.0%

Why has the drop in Treasurys not altered credit valuations?

• Because interest rates are historically high.

• Due to a positive environment for corporates.

• Because of a negative economic backdrop.

• Due to a lack of demand for yield.

What is causing investors to adjust their inflation expectations?

• A decrease in fiscal policy.

• The potential for broader fiscal policy and infrastructure spending.

• A rise in interest rates.

• A decline in corporate growth.

What should investors focus on in the face of market volatility?

• Focusing solely on short-term gains.

• Investing in sovereign bonds.

• Avoiding all bond investments.

• Remaining nimble and considering corporate bonds.