HSBC's Major Questions Dimon's 5% Yield Warning

The video discusses potential changes in interest rates, with Jamie Dimon suggesting a 5% rate, which is debated due to current Fed predictions. Historical trends are analyzed, showing a long-term disinflation trend. The significance of a 3% rate is questioned, with market reactions and investment strategies discussed. The possibility of a Fed pause is considered, with implications for the yield curve and bond market.

What is the main skepticism about Jamie Dimon's prediction of a 5% yield?

• It contradicts current market trends.

• The prediction is based on outdated data.

• The Federal Reserve is expected to lower rates.

• It is not supported by the research department.

What historical trend is discussed in relation to the US Treasury market?

• A 40-year disinflation trend

• A 30-year inflation trend

• A 20-year inflation trend

• A 10-year deflation trend

How often did the 10-year Treasury close at or above 3% in 2018?

• On 8 occasions

• On 10 occasions

• On 12 occasions

• On 5 occasions

What is the expected impact of a Federal Reserve pause on the yield curve?

• The yield curve will steepen significantly.

• The yield curve will rise above 4%.

• The yield curve will flatten below 3%.

• The yield curve will remain unchanged.

What is the predicted range for the yield curve if the Fed pauses?

• Between 2.5% and 3%

• Between 2% and 2.3%

• Between 3.5% and 4%

• Between 3% and 3.5%