2% 10-Year Bond Yield in Play This Year, Says Wells Fargo

The transcript discusses the rebalancing of pension plans, predicting a significant shift from equities to bonds. It analyzes market trends, including treasury yields and inflation expectations, and compares global yields. The impact on mutual fund investors is highlighted, with potential outflows due to negative returns. The Federal Reserve's approach to inflation and future meetings is also discussed.

What is the expected flow from equities to bonds by pension plans?

• 5-10 billion

• 50-60 billion

• 26-27 billion

• 10-15 billion

Which type of equities are expected to be sold first during rebalancing?

• Mid caps

• Small caps

• Large caps

• Tech stocks

What historical event is compared to the current rise in treasury yields?

• The Taper Tantrum

• The Dot-com Bubble

• The Financial Crisis of 2008

• The Great Recession

What is the potential yield target for the 10-year Treasury this year?

• 4%

• 3%

• 2%

• 1%

What challenge does Chairman Powell face regarding inflation?

• Targeting average inflation above 2%

• Keeping inflation below 1%

• Reducing inflation to zero

• Increasing inflation to 5%