Why U.S. Treasuries Matter More Than You Think for Canadian Investors

If you are trying to understand what is really driving markets today, the conversation starts with U.S. Treasuries.

In this episode, Jean-Christian (JC) Daigle, Vice President and Portfolio Manager at Global X Canada, sits down with Tony Dong, Founder and Owner @ ETF Portfolio Blueprint, to break down why U.S. Treasuries and the yield curve remain the foundation of the global financial system and why Canadian investors should be paying close attention.

JC and Tony explain how long-term U.S. yields influence Canadian mortgage rates, bond ETFs, equity valuations, currency movements, and portfolio construction. They discuss why U.S. Treasuries serve as the global risk-free benchmark, how inflation dynamics, Treasury issuance, and shifting expectations for U.S. Federal Reserve rate cuts are driving rate volatility, and why long-duration bonds can act as a portfolio shock absorber during periods of economic stress.

The conversation also covers key fixed income concepts including duration, convexity, and term premium, and why long-term Treasuries have historically responded strongly to macro surprises, recessions, and deflationary environments. JC and Tony outline why accessing this part of the yield curve is not always straightforward for Canadian investors, and how ETF structures can help simplify exposure.

The episode concludes with a look at how Canadian investors and advisors can efficiently access long-term U.S. Treasury exposure through a liquid, rules-based ETF.

ETF discussed in this video:
• Global X 20+ Year U.S. Treasury Bond Index ETF (TLTX)
https://www.globalx.ca/product/tltx

Timestamps:
00:00 Why U.S. Treasuries Drive Global Markets
00:30 Why the Yield Curve Matters for Canadians
01:30 What Is Driving Rate Volatility Today
02:30 Long-Term Treasuries as a Portfolio Shock Absorber
03:30 Duration, Convexity, and Term Premium Explained
04:30 Why Volatility Can Be an Opportunity
05:00 Challenges for Canadians Accessing Long-Term Treasuries
05:30 How TLTX Provides Long-End Treasury Exposure
06:20 How Long-Term Treasuries Fit Into a Portfolio
06:40 Final Takeaways for Investors

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