Bond Market Pricing 'Dire,' Quadratic's Davis Warns

The video discusses recent market stability and how equity markets are responding to bond signals. It highlights the inverted yield curve in the swap space, indicating potential issues in the bond market. The swaps market is analyzed, showing that institutional investors are concerned about Fed policy mistakes. The discussion covers the outlook for equity markets and potential relief if the Fed adjusts its approach. Finally, the video addresses the Fed's role in the global economy and the impact of future rate hikes.

In what ways might the Fed need to consider the global economy in their policy decisions?

What are the implications of having two full 75 basis point hikes priced in?