U.S. Rates Serving as Release Valve for Global Financial Pressure, Says BMO’s Hill

The video discusses the US rates market as a release valve for global financial pressures, especially after a dovish March FOMC meeting. It explores the implications of the Fed's potential end to the hiking cycle and the possibility of future rate cuts. The video also analyzes the stability and volatility in US rates, highlighting a shift from a coiling period to a lower plateau of rates. Finally, it examines the cyclical changes in the yield curve, emphasizing the importance of timing the cyclical steepening as a key trade in 2019.

What role do US rates play in the global macro financial environment?

• They are solely influenced by the US stock market.

• They act as a release valve for financial pressures.

• They are the primary driver of global inflation.

• They have no significant impact on global markets.

What does the market perceive about the Fed's hiking cycle after the March FOMC?

• The Fed plans to cut rates immediately.

• The Fed will continue hiking rates aggressively.

• The Fed is likely done with the hiking cycle.

• The Fed will not change rates for the next decade.

What does an inverted yield curve suggest about future interest rates?

• Overnight rates are higher than expected future rates.

• Overnight rates are expected to remain constant.

• Future rates will be unpredictable.

• Future rates are expected to be higher than current overnight rates.

What has been the trend in US rates over the past three months?

• High volatility and frequent changes.

• Stability with low volatility.

• Constant increase in rates.

• Constant decrease in rates.

What is the significance of timing the cyclical steepening of the yield curve?

• It is important for predicting inflation rates.

• It only affects long-term investments.

• It is crucial for successful trades in 2019.

• It is irrelevant to market strategies.