MUFG’s Tan Says Buy Chinese 10-Year Government Bonds

The video discusses the strong correlation between the RMB and EM currencies, influenced by the trade war. It examines the South Korean won's market position and suggests strategies like investing in Chinese bonds due to expected lower interest rates. A contrarian view on the Kiwi currency is presented, considering market sentiment and potential interest rate changes.

What is the main factor affecting the correlation between the Renminbi and emerging market currencies?

• Trade agreements

• Interest rates

• Trade war

• Inflation rates

Why might traders be hesitant to fade the weakness of the South Korean won?

• It is expected to strengthen

• It is not affected by the trade war

• It is a proxy for the Renminbi

• It is highly volatile

What economic condition is expected for Hong Kong according to the analysis?

• Negative GDP growth

• No change in GDP

• Stable GDP growth

• Positive GDP growth

What is the contrarian investment idea mentioned in the final section?

• Shorting the US dollar

• Investing in European bonds

• Going long on the New Zealand dollar

• Buying Japanese yen

What is the potential monetary policy action discussed for New Zealand in a crisis?

• Implementing negative interest rates

• Raising interest rates

• Maintaining current interest rates

• Increasing government spending