Yields Go Viral

Yields Go Viral

Assessment

Interactive Video

Business

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the impact of the coronavirus on the US market, focusing on treasury markets and asset classes. It explores whether recent market moves are technical or fundamental, highlighting the role of hedging and positioning. The uncertainty surrounding economic forecasts is emphasized, with potential impacts on global growth. The dynamics between central banks and markets are examined, particularly the Fed's response. Finally, the future of treasury yields is discussed, considering safe haven flows and potential recessionary conditions.

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7 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the main concern of the treasury market in response to the coronavirus outbreak?

Pessimism about US growth

Over-optimism about economic growth

Increase in commodity prices

Stability in global markets

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a significant factor contributing to the recent movements in the treasury market?

Increased consumer spending

Stable interest rates

Technical factors like hedging

Rising inflation rates

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

How does the uncertainty around the coronavirus impact market expectations?

It stabilizes global economic forecasts

It narrows the uncertainty band around growth estimates

It reduces the need for central bank intervention

It increases the uncertainty band around growth estimates

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the market's expectation of the Federal Reserve's response to the coronavirus impact?

Immediate rate hikes

No action throughout the year

Aggressive rate cuts

Increased bond purchases

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is the role of central banks in the current market environment?

To reduce market volatility

To stabilize currency exchange rates

To provide liquidity and support financial conditions

To increase interest rates

6.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What could cause US Treasury yields to fall further?

Stable global economic conditions

Rising stock market indices

Safe haven flows

Increased consumer confidence

7.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is a potential outcome if the coronavirus impact worsens?

A quick economic recovery

A decrease in global central bank interventions

A sub one percent 10-year Treasury yield

An increase in global trade