UBS' Tan Says Key Risk Is If U.S. Yields Keep Rising

The video discusses the global reactions to rising bond yields, highlighting Evercore ISI's notice that attributes the rise to fiscal overkill rather than monetary tightening. It explains that the increase in US bond yields is more related to fiscal expenditure than inflation. The video also explores the first and second round effects on the currency and FX market, noting that increased fiscal spending impacts the fiscal budget and current account balance, leading to currency volatility.

What is the primary reason for the rise in bond yields according to Evercore ISI?

• Fiscal overkill

• Global economic slowdown

• Monetary tightening

• Inflation rise

How does the first round effect of rising US bond yields manifest?

• Stability in the FX market

• Decrease in fiscal expenditure

• Increased inflation

• Volatility in the FX market

Which market experiences a shake-up due to rising US bond yields?

• Real estate market

• FX market

• Stock market

• Commodity market

What is a secondary effect of increased fiscal spending on the US dollar?

• Decrease in import consumption

• Worsening fiscal budget balance

• Strengthening of the US dollar

• Improved current account balance

What does the secondary impact of fiscal spending affect?

• US bond yields

• US dollar

• Global inflation

• Monetary policy