U.S. 10-Year Yields Likely to Rise Beyond 2%: Matthews Asia

The video discusses the Federal Reserve's inflation target and the importance of real rates being positive. It highlights the market's perception of the Fed's credibility in controlling inflation and the challenges of labor participation post-COVID. The discussion shifts to the risks associated with investment grade and high yield sectors, particularly in the context of interest rate hikes. The video concludes with an analysis of the Chinese property market, noting potential consolidation and recovery opportunities.

What is the Federal Reserve's target inflation rate?

• 4%

• 2%

• 3%

• 1%

What is one of the key factors affecting the Fed's ability to control inflation?

• Labor participation levels

• Trade tariffs

• Global oil prices

• Stock market performance

Why is investment-grade debt considered risky in the current market?

• It has a high default rate.

• It is less sensitive to interest rate changes.

• It has more duration risk.

• It is not affected by inflation.

What has been the trend in China's real estate market according to the discussion?

• Rapid growth in the first half of the year.

• Significant sell-off and potential recovery.

• Complete market collapse.

• Stable prices with no major changes.

What opportunity do buyers have in the current China property market?

• Avoiding all real estate investments

• Investing in high-growth projects

• Purchasing land and projects at a cheaper rate

• Buying assets at below book value