Yields Have a Way to Go Before Troubling Equities: JPM’s Craig

The video discusses the impact of rising bond yields on equity markets, highlighting the correlation between treasury yields and market performance. It examines the potential effects of economic growth on monetary policy, referencing the RBA's recent actions. The discussion also covers central banks' strategies in managing inflation and maintaining financial conditions, emphasizing the importance of keeping bond yield rises in check.

What is the historical correlation percentage between 10-year treasury yields and equity markets that indicates a significant negative impact?

• 2%

• 3%

• 5%

• 7%

At what yield percentage do institutions start considering rebalancing their portfolios?

• 2%

• 4%

• 3%

• 1%

What is one method central banks might use to apply downward pressure on rising bond yields?

• Increasing interest rates

• Forward guidance

• Reducing government spending

• Raising taxes

How did the recent GDP print from Australia affect the monetary policy outlook?

• It led to immediate policy tightening

• It had no impact on the policy outlook

• It suggested a delay in policy normalization

• It caused a reduction in interest rates

What is the expected timeline for central banks to consider policy normalization according to the transcript?

• Mid 2022

• Early 2022

• 2023 and beyond

• Late 2021