Why Are Investors Seeking Out Long-Term Treasuries?

The video discusses the significant performance difference between 30-year and 5-year Treasury bonds, highlighting a flattening yield curve. It explores interest rate trends, noting a shift in consensus about future rate increases and inflation expectations. The video also identifies types of investors in long-term bonds, such as pension funds and insurance companies, and addresses concerns about liquidity in the bond market, emphasizing a lack of fear despite potential rate increases.

What has been the performance of 30-year Treasurys compared to 5-year bonds this year?

• 5-year bonds gained more than 20%

• Both gained equally

• 30-year Treasurys gained less than 3%

• 30-year Treasurys gained more than 20%

What is the current consensus regarding inflation and interest rates?

• Inflation will exceed 2% soon

• Interest rates will rise significantly

• Inflation will remain within or below the Fed's target

• Interest rates will drop to zero

Which type of investors are typically interested in long bonds?

• Retail investors

• Pension funds

• Cryptocurrency enthusiasts

• Day traders

Why do some investors prefer long bonds despite low returns?

• To avoid taxes

• Due to high liquidity

• For quick profits

• To match liabilities with obligations

What is the current sentiment regarding liquidity in the long bond market?

• Expectation of immediate rate hikes

• Complete lack of concern about rising rates

• High concern about liquidity issues

• Fear of a market crash