10-Year Move Towards 2% a 'Bit Overdone,' Citi's Levkovich Says

The video discusses current market trends, highlighting a 15-17% increase in tradeable assets this year. It emphasizes the importance of recognizing these as trades due to potential repercussions from tightened credit conditions. The Senior Loan Officer survey indicates significant tightening, which may negatively impact industrial production and employment by late summer. This could lead to a market pullback. The video also explores the tension between dividend growth and low yields, suggesting that the move towards 2% yields might be overdone. Finally, it considers the possibility of the Fed pursuing a rate-cutting cycle if economic sluggishness persists in September.

What is the current trend in tradeable assets this year?

• They have remained stable

• They have increased by 15-17%

• They have decreased by 15-17%

• They have fluctuated without a clear trend

What is expected to happen by late summer due to tightened credit conditions?

• Increase in industrial production

• Rise in consumer spending

• Decrease in employment and capital spending

• Stability in market conditions

What does the Senior Loan Officer survey indicate?

• Loosening of credit conditions

• Significant tightening of credit conditions

• No change in credit conditions

• Improvement in credit availability

What is the concern regarding the move towards 2% yields?

• It is considered too conservative

• It is viewed as insufficient

• It is seen as overdone

• It is regarded as optimal

What might prompt the Fed to consider a rate-cutting cycle?

• Economic sluggishness in September

• Rapid economic growth

• Stable economic conditions

• High inflation rates