Mizuho's Chatwell Sees U.S. 10-Year Yields Heading to 3% Over Medium Term

The video discusses recent trends in the bond market, highlighting a 14 basis point movement and a decrease in volatility. It explores the potential impact of a positive catalyst on the 10-year note and the likelihood of US rates heading towards 3%. The discussion also covers expectations from the Fed meeting, potential curve steepening, and the influence of Jerome Powell's dovish tone. The video concludes with caution about the Fed's ability to maintain its current stance amid weak data due to a government shutdown.

What recent change has been observed in the bond market?

• A 14 basis point increase in volatility

• A 14 basis point decrease in volatility

• No change in the bond market

• A 14 basis point movement in the bond market

What could cause the 10-year note to rise above 280?

• A negative catalyst in US events

• A positive catalyst in US events

• A decrease in market pessimism

• An increase in market pessimism

What is the expected medium-term outcome for US rates?

• Rates will head towards 3%

• Rates will decrease to 2%

• Rates will remain below 280

• Rates will stabilize at 1%

What might cause curve steepening in the near term?

• A hawkish tone from the Federal Reserve

• A dovish tone from the Federal Reserve

• An increase in government spending

• A decrease in government spending

What is the potential impact of weak data due to a government shutdown?

• The Fed will maintain its current policy

• The Fed will enter a hiking mode

• The Fed will lower interest rates

• The Fed will increase bond purchases