Pimco's Bosomworth Sees 'Sideways' U.S. Yields

The video discusses the rise in yields post-US elections and the market's expectations for growth. It highlights the need for economic data to validate these expectations and the Fed's potential rate hikes. The discussion also covers uncertainties in the policy mix, including trade and Brexit, and the implications for central banks. Finally, it delves into the Fed's balance sheet and the potential impact of its reduction on the market.

What has been the trend in US yields since the elections, and what is expected to happen next?

• Yields have decreased and are expected to continue decreasing.

• Yields have increased and are expected to move sideways.

• Yields have remained stable and are expected to increase.

• Yields have decreased and are expected to increase.

What recent economic data is mentioned as encouraging for the Federal Reserve?

• The unemployment rate

• The consumer confidence index

• The ADP report

• The housing market index

What is one of the uncertainties affecting the Federal Reserve's policy decisions?

• The outcome of the US elections

• The trade policy mix

• The level of consumer spending

• The state of the housing market

What is the Federal Reserve's stance on the balance sheet as discussed in the transcript?

• They plan to increase the balance sheet immediately.

• They have no plans to change the balance sheet.

• They are considering reducing the balance sheet once rates are higher.

• They plan to reduce the balance sheet regardless of rate levels.

Under what condition might the Federal Reserve begin reducing its balance sheet?

• Once GDP growth exceeds 4%

• Once unemployment falls below 3%

• Once they are comfortable with the policy rate above zero

• Once inflation reaches 5%