BNP's Mutkin Ponders a Risk Off Bond Market Trade

The transcript discusses the potential impact of trade policies, such as tariffs and trade wars, on earnings and supply chains, particularly focusing on emerging markets like Mexico and China. It highlights the value of domestic-facing stocks over export manufacturers in these regions. The conversation also explores how bond markets might react to risk-off scenarios, considering the Federal Reserve's slow policy movements and the implications for term premiums and yield curves.

In what ways might bond markets react to escalating trade tensions?

Discuss the implications of the Federal Reserve's actions on term premiums and yield curves in the current economic environment.