Nathan Sheets, PGIM Fixed Income chief economist, visited with CNBC to provide his thoughts on the economy and Federal Reserve policy, particularly the Treasury yield curve.

Points discussed:

  • The flatness of the 10-year Treasury yield curve is getting the Fed pause
  • Factors holding down long end of the yield curve
    • Fed is taking out duration in the market
  • There is more worry in the bond market
    • A lot of manmade/policy-induced uncertainties
  • Economy has significant momentum–pace of investment is growing
  • Trade wars create a lot of uncertainties and could be disruptive for the economy
    • Tariffs put upward pressure on prices

Related: Bond Markets Watching How Trade Disputes Impact Rates

To view the complete video, click below:

For more trends in fixed income investing, visit the Fixed Income Channel.