Morgan Stanley's Hornbach Sees U.S. 10-Year at 1.25

The transcript discusses the journey of bond yields, central bank policies, and their impact on the market. It explores factors like economic data and financial conditions that influence yields, and the potential effects of the US election on the yield curve. The discussion also covers trade policies and their inflationary impact, as well as uncertainties surrounding Federal Reserve leadership under a Trump presidency.

What is one of the main reasons the 10-year yield is expected to reach 125 by year-end?

• Increased inflation expectations

• Decreasing bond market volatility

• Supportive actions by central banks

• Rising global growth rates

How might the US election impact the yield curve according to the discussion?

• It will cause the yield curve to invert

• It could steepen the yield curve

• It will have no impact on the yield curve

• It will flatten the yield curve

Which point on the yield curve is favored in the event of a Donald Trump election?

• Seven-year point

• Five-year point

• Two-year point

• Ten-year point

What is a potential consequence of a Donald Trump presidency on the Federal Reserve?

• Increased bond purchases

• Stable monetary policy

• Immediate rate hikes

• Uncertainty in leadership

What might Janet Yellen consider doing if her independence is questioned by a new president?

• Increase interest rates

• Extend her term

• Resign from her position

• Implement new monetary policies