Pimco's Fels Says It's Too Early to Call an End to Bull Run in Bonds

The video discusses the potential for bond yields to go negative, as seen in Europe and Japan, and explores scenarios where U.S. treasury yields might approach zero or negative levels during a recession. It highlights the global saving glut and demand for safe assets, suggesting that despite challenges, there is still room for bonds to rally, especially in the U.S., during market downturns.

What is a significant lesson learned about bond yields in recent years?

• They can only increase.

• They can go negative.

• They are always stable.

• They are unaffected by global events.

What might happen to U.S. treasury yields during the next recession?

• They will remain stable.

• They will increase significantly.

• They may approach zero or negative levels.

• They will be unaffected by the recession.

Why is it challenging to predict the end of the global bond bull run?

• Because the Fed controls all bond yields.

• Due to the global excess of desired saving over investment.

• Because bond yields are always increasing.

• Because bonds are not influenced by market downturns.

What is a global saving glut?

• A shortage of savings worldwide.

• An excess of desired saving over investment globally.

• A balance between saving and investment.

• A decrease in global demand for safe assets.

What could happen to bonds during a market downturn?

• They will lose all value.

• They will remain unaffected.

• There is potential for them to rally, especially in the U.S.

• They will only rally in Europe.