HSBC Says Fed May Reduce Balance Sheet Starting July

The video discusses the US Treasurys market, highlighting past doubts despite Janet Yellen's clear intentions. It covers central banks' efforts to maintain predictability through rate hikes and the challenges of unwinding quantitative easing without affecting its benefits. The historical context of rate hikes since 2015 is explored, along with their impact on the market. The video concludes with a discussion on global economic trends, liquidity, and potential risks of overvaluation.

What is meant by the 'sweet spot conundrum' in the context of central banks?

What concerns arise from the current valuations in the market?