BNP Paribas' Morris Expects Four Fed Rate Hikes in 2018

The video discusses the rising demand for T-bills and its impact on Treasury yields, suggesting that yields may decrease by year-end. It examines the implications of potential Fed rate hikes, driven by economic growth and inflation concerns. The discussion highlights the balance between inflation expectations and market reactions, noting that while inflation is rising, the risk of it accelerating beyond 3% remains low.

What is the short-term outlook for the 10-year Treasury yield according to the transcript?

• It is expected to rise significantly.

• It is expected to fall below 2%.

• It is expected to remain stable.

• It is expected to be cautious around 3%.

What factor is contributing to the increase in Treasury issuance?

• Rising inflation

• Budget deficit

• Strong economic growth

• Decrease in global demand

How does the global demand for Treasurys affect yields?

• It has no effect on yields.

• It causes yields to fall.

• It stabilizes yields.

• It causes yields to rise.

Why is the Federal Reserve expected to raise rates?

• To increase the budget deficit

• To decrease unemployment

• To prevent inflation from exceeding 3%

• To encourage economic growth

What is the current annualized inflation rate for core CPI mentioned in the transcript?

• 2.5%

• 3.5%

• 2.0%

• 2.9%