Is There Market Demand for U.S. Ultra-Long Bonds?

The video discusses the Treasury Borrowing Advisory Committee's past and current insights on demand for ultralong maturities, comparing yield curves from 2017 to 2019. It analyzes market dynamics, Treasury strategies, and the impact of issuance on curve steepening. The role of the Advisory Committee and concerns about a market bubble are also explored.

What was the Treasury Borrowing Advisory Committee's stance on ultralong maturities in 2017?

• They saw strong demand for maturities beyond 30 years.

• They were undecided about the demand for ultralong maturities.

• They recommended issuing only short-term bonds.

• They did not see strong or sustainable demand for maturities beyond 30 years.

Why does the speaker believe the yield curve is flat?

• Because of a lack of short-term bond supply.

• Because the Fed is ineffective or not doing enough.

• Due to high inflation expectations.

• Due to high demand for long-term bonds.

What strategy does the speaker suggest the Treasury could use to manage the yield curve?

• Focusing solely on short-term bonds.

• Reducing the issuance of all bonds.

• Barbelling by issuing both 20-year and 50-year bonds.

• Issuing only 30-year bonds.

What is the speaker's view on the bond market?

• They believe it is unaffected by current economic policies.

• They see it as undervalued.

• They think it is in a bubble.

• They believe it is stable and growing.

What does the speaker suggest is necessary for the next leg up in equity markets?

• Higher inflation rates.

• Cyclical leadership.

• Increased bond issuance.

• More government intervention.