Pressure on BOJ, Flattening Yield Curve: 3-Minute MLIV

The video discusses the rising yields in Japan, focusing on the pressure faced by the Bank of Japan (BOJ) in maintaining yield control amidst global yield increases. The team debates whether the BOJ can sustain its policy, considering inflation and yen depreciation. The discussion shifts to the yield curve, particularly the gap between two-year and ten-year yields, and its implications for predicting recessions. The video concludes with insights on financial conditions and potential economic impacts.

What is the main concern regarding the Japanese 30-year yield?

• It is decreasing rapidly.

• It is at its lowest level in six years.

• It is rising and putting pressure on the BOJ.

• It is stable and not causing any issues.

What is the general view of the team regarding the BOJ's policy?

• The BOJ should abandon its current policy.

• The BOJ should increase bond purchases.

• The BOJ should maintain its policy to avoid losing credibility.

• The BOJ should focus on reducing inflation.

What recent action did the BOJ take regarding fixed rate operations?

• Reduced the fixed rate to zero.

• Increased the fixed rate significantly.

• Stopped all fixed rate operations.

• Reported a take-up of 286 billion yen.

What is the significance of the two-year and ten-year yield gap in the US?

• It is a potential indicator of a future recession.

• It indicates a stable economic environment.

• It has no impact on economic predictions.

• It shows that the economy is growing rapidly.

What has the two-year and ten-year yield curve historically predicted?

• All recent inflation spikes.

• All recent recessions, including the short one in 2020.

• All recent economic booms.

• All recent stock market crashes.