Correction in Lower Yields Is Over, Morgan Stanley’s Caron Says

The video discusses the factors influencing the rise in US Treasury yields, including changes in net supply, potential deficit financing of the infrastructure bill, and the Federal Reserve's tapering plans. It highlights the reversal of factors that kept yields low and projects future yield levels, considering market technicals and external influences like energy prices and COVID-19 trends.

What was one of the technical reasons for the low yields mentioned in the video?

• Low net issuance of US Treasurys

• Increase in energy prices

• Decline in COVID cases

• High net issuance of US Treasurys

What is one factor that is contributing to the rise in yields according to the video?

• Decrease in energy prices

• Reduction in infrastructure spending

• Increase in COVID cases

• Federal Reserve's tapering plans

What is the expected impact of declining COVID cases on the market?

• Higher yields

• No impact

• Decrease in energy prices

• Lower yields

At what 10-year yield level does the video suggest a shift in market dynamics?

• 1.20%

• 1.40%

• 1.60%

• 2.00%

What is the potential yield level that could be tested by the end of the year?

• 1.5%

• 1.7%

• 2.5%

• 2.0%