HSBC’s King: ‘Reasonable Chance’ Yields Stay Low Despite Stimulus

The video discusses the dynamics of yield movements and the potential for reversals, emphasizing that supply issues may not significantly impact interest rates. Despite recent fiscal stimulus, bond yields have remained low globally. In the US, fiscal policy is influenced by the Federal Reserve and Treasury, with Janet Yellen advocating for more fiscal stimulus. The video also compares the US situation to Japan's long-term low yields despite high government debt.

What is the main concern regarding supply issues in the US?

• They are leading to a reduction in treasury issuance.

• They are causing a decrease in fiscal stimulus.

• They are causing a rise in unemployment.

• They are believed to drive interest rates significantly.

What has been the trend in bond yields despite massive fiscal stimulus globally?

• Bond yields have become unpredictable.

• Bond yields have fluctuated wildly.

• Bond yields have remained extremely low.

• Bond yields have significantly increased.

Who is suggested to be advocating for more fiscal stimulus in the US?

• Janet Yellen

• The US Treasury

• Steve Publisher

• The Federal Reserve

What is the relationship between the Federal Reserve and the Treasury in the US context?

• The Federal Reserve and Treasury have no interaction.

• The Treasury controls the Federal Reserve.

• The Federal Reserve is independent of the Treasury.

• The Treasury is run by someone who used to run the Federal Reserve.

What historical example is used to illustrate low yields despite high government debt?

• United Kingdom

• China

• Germany

• Japan