Why Treasury Bond Yields Are at Record Lows

The video discusses the global trend of negative yield curves, particularly in major economies like Japan, Germany, and the US. It explains the supply-demand dynamics affecting government bonds and the implications for investors seeking positive yields. The US yield curve is highlighted, noting its flattening trend and potential recession signals. However, the current flattening is attributed to different factors than in the past, suggesting weaker recession signals. The video concludes with the impact of low yields on emerging markets, which have seen significant growth.

What is one reason for the record low yields in countries like Japan and Germany?

• High inflation rates

• Government bond buybacks

• Rising interest rates

• Increased consumer spending

Why might a flattening yield curve not necessarily indicate a recession in the current context?

• The front-end rates are decreasing

• The yield curve is steepening

• The back-end yield is rising

• The Fed is not hiking interest rates

What typically causes a yield curve to flatten and signal a recession?

• Fed hiking interest rates

• Decreasing inflation

• Increased government spending

• Rising stock market

Which asset class is benefiting the most from low yield curves?

• Commodities

• Cryptocurrencies

• Real estate

• Emerging markets

How have local emerging markets performed on a year-to-date basis?

• Stable with no change

• Down 5%

• Up 2%

• Up over 10%