What Level of Treasury Yields Will Reignite Foreign Demand?

The video discusses the factors influencing investor interest in gilt yields, particularly in the UK and US markets, following the EU referendum. It highlights the role of domestic bond markets and the impact of overseas investment trends on money flows. The discussion also covers the importance of considering both nominal yields and hedging costs when investing, especially in relation to the dollar.

What could make the market attractive to UK and US investors?

• Rising inflation rates

• Record low gilt yields

• High unemployment rates

• Increased government spending

How might more attractive domestic yields affect international investment?

• Increase international investments

• Decrease onshore investments

• Keep investments more onshore

• Lead to higher inflation

What is a potential consequence of reduced international investor interest in the dollar?

• Increased dollar value

• Less international investor appetite for the dollar

• Decreased domestic investments

• Higher international trade

What factors should be considered when evaluating investment opportunities?

• Nominal yields and hedging costs

• Government policies

• Only hedging costs

• Only nominal yields

Why is it important to factor in the cost of buying dollars?

• It affects the nominal yield

• It impacts government policies

• It influences the overall investment return

• It determines the inflation rate