Markets in 3 Minutes: 2-Year Yields, Fed Rates, Not a Crisis

The video discusses the recent changes in the two-year note yield, highlighting an average daily change of 25 basis points since March 7th. It explores factors influencing these changes, such as the Fed funds rate, inflation forecasts, and credit crunch. The market's expectations of rate cuts contrast with the Fed's stance, which does not foresee immediate rate reductions. Potential economic scenarios, including a recession, are considered, with the possibility of further rate hikes. The video concludes with a brief mention of other financial topics like FX markets and crypto.

What has been the average daily change in the two-year note yield since March 7th?

• 15 basis points

• 25 basis points

• 35 basis points

• 45 basis points

What is one reason the two-year yields might go higher?

• The Fed is expected to cut rates soon.

• The inflation forecast has been lowered.

• The benchmark Fed funds rate is higher than the two-year yield.

• The market is expecting a deep crisis.

How many rate cuts are priced in from June onwards over the next 12 months?

• More than four

• More than six

• More than eight

• More than ten

What is the market's expectation regarding the Fed's rate cuts?

• The market expects rates to remain unchanged.

• The market expects no rate cuts.

• The market expects rapid rate cuts to zero.

• The market expects gradual rate increases.

Which of the following topics is mentioned as a future discussion point?

• FX markets

• Space exploration

• Global warming

• Healthcare reforms