Daybreak Europe Show Open: Steepening of Yield Curve

The video discusses recent trends in the bond market, focusing on the potential rerating of 10-year treasuries to 3%. It explores the difference between market tantrums and dislocations, noting the lack of a significant event to explain the current sell-off. The discussion highlights the steepening of the yield curve and the implications of quantitative tightening (QT) on market dynamics. The conversation also touches on the global market, particularly the impact of China's policy easing and the disappearance of the premium of Chinese bonds over US bonds.

What is the market anticipating for 10-year treasuries by the end of the week?

• No change

• An increase to 5%

• A rerating to 3%

• A decrease to 1%

What is the differential between a market tantrum and a dislocation?

• A tantrum is less severe

• They are the same

• A dislocation is more severe

• A tantrum is more severe

What is the main topic of discussion regarding QT?

• A decrease in interest rates

• A more aggressive QT approach

• The end of QT

• A new monetary policy

How many basis points is $95 billion in withdrawals equivalent to, according to Andy Bretter?

• 50 basis points

• 100 basis points

• 150 basis points

• 200 basis points

What significant change has occurred with Chinese bonds?

• Their premium over US bonds has increased

• Their premium over US bonds has disappeared

• They have been delisted

• They have become more volatile