TD's Priya Misra, JPMorgan's Bob Michele on Treasury Yields

The video discusses the market's uncertainty between a better economic outlook and a hawkish Fed. It highlights the Fed's reassessment of its outlook and the market's questioning of the Fed's commitment to FAIT. The discussion covers the impact of Fed policy on inflation expectations and real rates, and the potential policy mistake narrative. The bond market dynamics are analyzed, focusing on the influence of central bank asset purchases and technical short covering. The relentless impact of QE on cash flow and bond market is also explored.

What is the market struggling to understand according to the first section?

• The impact of global warming

• The Fed's policy direction

• The rise of cryptocurrency

• The effects of trade wars

What does the first section suggest about inflation expectations if the Fed sounds more hawkish?

• They will increase

• They will remain unchanged

• They will become unpredictable

• They will decline

According to the second section, what has been the effect of central bank asset purchases on bond yields?

• They have decreased yields

• They have had no effect

• They have made yields volatile

• They have increased yields

What is a key factor driving cash inflows into bond funds as mentioned in the third section?

• Quantitative easing

• Rising stock market

• Decreasing interest rates

• Political stability

Who ultimately controls the level of yields according to the third section?

• Central banks

• The stock market

• Government policies

• Active bond investors