Where Are U.S. Bond Yields Headed From Here?

The video discusses the potential risks in the bond market as the Federal Reserve considers raising interest rates. It highlights the positioning risk due to rising rates from a low base and the nervousness in the market as inflation begins to emerge. The discussion also covers the recent trends in bond markets, uncertainties due to political and geopolitical risks, and the skewed downside risk. Additionally, the video analyzes the flow of money between bond and equity funds, suggesting a possible shift back to equities if inflation returns, creating a favorable environment for equities despite challenges for traditional bond funds.

What are the potential risks associated with rising interest rates in the bond market?

How does the current bond market situation compare to previous months?

What factors contribute to the uncertainty in the bond market?

What does the term 'great rotation' refer to in the context of bond and equity funds?

In what ways could inflation impact the bond market and equities?