BlackRock's Cooper Sees a Move to Curve Steepening

The video discusses the concept of curve steepening in the market, influenced by recent comments from Bullard and quantitative tightening. It highlights the potential impact of inflation surprises and global term premiums on yields. Barclays suggests the market may have overreacted, with real rates appearing too high. The discussion also covers Fed policy expectations, balancing inflation and economic growth risks.

What is one of the main reasons for the market's shift towards curve steepening?

• Bullard's comments

• Decrease in inflation

• Reduction in global trade

• Increase in short-term yields

Which factor is likely to send the 10-year yield higher?

• Upside inflation surprises

• Decrease in global demand

• Lower interest rates

• Stable economic growth

How might a more hawkish stance by the Bank of Japan and ECB affect global term premiums?

• Decrease them

• Have no effect

• Cause them to remain low

• Increase them significantly

What is Barclays' view on the 10-year yield?

• It will rise to 2.3%

• It will fall below 2%

• It will remain stable

• It will decrease to 1.5%

What does the market's pricing of Fed hikes suggest about future policy actions?

• Continued tightening with a possible pause

• Aggressive rate hikes without pause

• Immediate rate cuts

• No changes in policy