Very Bullish on Treasuries in 2021, Says HSBC’s Major

The video discusses the volatility in the bond market, focusing on BTP risk and the role of the ECB. It highlights the impact of the EU Recovery Fund and ECB's actions on market dynamics. The interconnectedness of global markets is emphasized, particularly in relation to bond yields and forecasts for 2021. The discussion also covers the potential risks to equities and real yields, considering inflation expectations and market corrections.

What major event changed the dynamics of the bond market compared to previous crises?

• The Brexit agreement

• The rise of cryptocurrency

• The introduction of the Recovery Fund and Next Gen issuance

• The U.S. presidential election

Why is the 10-year U.S. Treasury rate significant in the market?

• It serves as a reference rate for various markets

• It is the most volatile bond

• It is the highest yielding bond

• It is the only bond issued by the U.S. government

What is the forecasted inflation rate by the end of the year according to the transcript?

• Above 3%

• Below 2%

• Exactly 2%

• Between 2% and 3%

What could potentially disrupt the pricing of risky assets?

• An increase in real yields

• A decrease in nominal yields

• A stable inflation rate

• A decrease in market volatility

How are equities currently priced according to the transcript?

• Based on high real yields

• Based on fluctuating nominal yields

• Based on stable inflation rates

• Based on extraordinarily low real yields