Investors Bail on Bonds as Selloff Deepens

The video discusses the bond market trends, focusing on U.S. Treasury yields and Fed policy for 2017. It highlights the potential for increased volatility in bond and equity markets, while foreign exchange volatility may remain low. The discussion also covers central bank policies, including the Fed's expected rate increases, ECB's QE tapering, and the Bank of Japan's focus on the yen. The video concludes with an analysis of fiscal policy divergence, particularly in the U.S. and Europe.

What is the expected range for the 10-year U.S. Treasury yield by mid-2017?

• 1.5% to 1.7%

• 2.3% to 2.5%

• 2.8% to 3.0%

• 3.1% to 3.3%

How is bond market volatility expected to change if there is a bond sell-off?

• It will decrease significantly.

• It will fluctuate randomly.

• It will remain unchanged.

• It will increase.

What is the main concern regarding European bond yields?

• Whether the ECB will taper QE after March.

• The stability of the Euro.

• The impact of Brexit on yields.

• The influence of Asian markets.

What is the expected focus of the Bank of Japan's policy?

• Expanding fiscal policy.

• Preventing the yen from appreciating.

• Reducing QE significantly.

• Increasing interest rates.

What is a key theme expected over the next three to six months?

• Rapid inflation increase.

• Central bank convergence.

• Central bank divergence.

• Global economic recession.