StanChart's McDonnell Says Bond Market Beginning to Look Overstretched

The transcript discusses the current inflation outlook and the potential for a change in verbiage at the upcoming January 31st meeting, suggesting a more hawkish tone. It also examines the rise in 10-year bond yields and the recent US GDP numbers, which fell short of expectations. The bond market appears overstretched, but it is pricing in an upgraded growth outlook. The discussion highlights the market's growing confidence in growth prospects, creating a conundrum for the Fed as it balances growth and inflation outlooks. Overall, a more hawkish stance is deemed appropriate, validating the rise in bond yields.

What is the speaker's view on the shift in inflation outlook?

How does the speaker perceive the bond market's current state?

What does the speaker suggest is being priced in by the market?

What is the speaker's opinion on the outlook for growth versus inflation?

What conclusion does the speaker draw about the Fed's potential actions?