'Decent Risk' of 5-6% Treasury Yields This Year, says Subbaraman

The video discusses the potential rise in 10-year Treasury yields to 5-6% due to factors like sticky inflation and large fiscal deficits, drawing parallels to the 1980s and 1990s. It examines the impact of Treasury nominee Scott Percent's views on the bond market and fiscal challenges. The discussion also covers potential Federal Reserve actions and market reactions, including the risk of interest rate hikes. Finally, it explores the global implications of rising US Treasury yields, particularly for countries with weak economic fundamentals.

What is the Nomura view on the likelihood of inflation increasing this year?

What factors should be monitored regarding tariffs and their potential impact on the economy?

In what ways could higher yields affect other asset classes and the equity market?

How might the global bond market react if US yields reach 6%?