Why Bank of America Is Lowering Its Bond Yield Forecasts

The video discusses the forecast for U.S. Treasury and other developed market bond yields, highlighting the impact of the US-China trade dispute. Analysts, including those from Bank of America, have downgraded their expectations for year-end 10-year Treasury yields due to a more dovish stance by central banks and ongoing trade tensions. The video emphasizes the challenges in resolving trade disputes and their long-term effects on global growth and inflation.

What is the main reason for the lack of optimism regarding a quick resolution to the US-China trade dispute?

• Stable global market conditions

• Improved diplomatic relations

• Rising bond yields

• Increased trade tariffs

What was the Bank of America's revised forecast for the 10-year Treasury yield by the end of the year?

• 3.5%

• 2.6%

• 3.0%

• 2.8%

How did the Bank of America's forecast for the end of 2019 change from the end of 2018?

• It increased to 3.5%

• It decreased from 3.25%

• It remained the same at 3%

• It decreased to 2.6%

What tone have central banks adopted according to the Bank of America?

• Dovish

• Neutral

• Hawkish

• Aggressive

What is one of the unrealistic predictions that influenced higher yield expectations?

• Increase in consumer spending

• Decrease in global inflation

• Rapid technological advancements

• Easing of tariff tensions