HSBC's Major Still Sees Relative Value in Treasuries

The video discusses the unchanged forecast for the 10-year Treasury since 2017, highlighting the market's ebb and flow. It analyzes the Fed's rate hikes and their impact on the yield curve, predicting a flat curve post-hikes. The consensus aligns with the Fed's view of a 3% rate, but the speaker anticipates changes. The forecast includes two more rate hikes in 2018 and possibly one in 2019. The video also touches on global financial conditions tightening rapidly, which may not be evident in domestic data.

What has been the forecast for the 10-year Treasury yield since September 2017?

• 3.0%

• 3.5%

• 2.5%

• 2.3%

How many rate hikes does the speaker predict for 2018?

• None

• One

• Two

• Three

What is the expected shape of the yield curve after the Fed finishes hiking?

• Steep

• Flat

• Inverted

• Curved

What is the speaker's view on global financial conditions?

• Unchanged

• Tightening

• Loosening

• Stable

What aspect of the economy is the Fed primarily focused on according to the speaker?

• Cryptocurrency

• Domestic data

• Real estate

• Global markets