Deflationary Forces are Very Strong, Shilling Says

The transcript discusses the impact of DIS inflation on 30-year bonds and examines whether the vector for disinflation remains in place. It highlights the effects of the Federal Reserve's rate hikes since December 2015 on 10-year and 30-year Treasurys, noting that the spillover has been less than expected. The discussion also compares expected and actual changes in basis points, suggesting strong deflationary forces are at play.

What is the main focus of the discussion on disinflation in the context of 30-year bonds?

• The impact of inflation on short-term bonds

• The ongoing trend and terminal value of disinflation

• The role of inflation in the stock market

• The effect of disinflation on currency exchange rates

Since December 2015, how have the Fed's rate hikes affected 10-year and 30-year Treasury bonds?

• They have had a larger impact than expected

• They have had a smaller impact than expected

• They have had no impact at all

• They have caused a significant increase in bond prices

What was the expected increase in basis points for the 10-year bond due to the Fed's actions?

• 25 basis points

• 50 basis points

• 100 basis points

• 150 basis points

What was the actual change in basis points for the 30-year bond?

• It increased by 50 basis points

• It increased by 100 basis points

• It decreased by 25 basis points

• It remained flat

What conclusion is drawn about deflationary forces in the final section?

• They are unpredictable

• They are irrelevant

• They are very strong

• They are weakening