Treasuries Rally as Trump Sees ‘No Deadline’ for China Trade Deal

The video discusses the current state of the US bond market, influenced by trade developments and potential tariff increases. It explores the Federal Reserve's possible rate cuts in response to economic data and trade uncertainties. The global bond market is experiencing synchronized movements, with notable changes in Europe. The weakening correlation between stock and bond markets, driven by trade issues, affects risk parity funds.

What has been a significant factor in the recent sell-off in the US bond market?

• Positive developments in trade

• Increase in interest rates

• Decrease in inflation

• Strong economic growth

What is the Federal Reserve considering in response to trade uncertainties?

• Increasing interest rates

• Implementing quantitative easing

• Cutting rates further

• Raising tariffs

When is the first rate cut expected to be priced in according to the bond market?

• January 2020

• September 2020

• December 2020

• March 2020

Which European country experienced a significant bond market movement?

• France

• Italy

• Netherlands

• Spain

What is the effect of trade issues on the correlation between stock and bond markets?

• Weakening correlation

• No change in correlation

• Reversing correlation

• Strengthening correlation