HSBC's Steven Major Shatters Myths of Fixed-Income Market

The video discusses a research paper challenging common misconceptions about fiscal loosening and bond yields. It argues that fiscal loosening does not necessarily drive bond yields higher, supported by empirical evidence from the past 30-40 years. The discussion includes historical examples, the role of central bank policy rates, and the impact of economic environments. It also touches on the implications of high debt levels on future growth, concluding that common views on fiscal policy and bond yields are not always supported by data.

What empirical evidence contradicts the belief that fiscal policies lead to higher bond yields?

In what ways can excessive debt impact future economic growth?