UBS' Tay Sees More Volatile Market Ahead

The video discusses the current state of the treasury market, highlighting the rise in US 2-year yield and the significance of upcoming treasury auctions. It explores the correlation between global volatility and stock market recovery, emphasizing that recent market corrections were technical rather than fundamental. The discussion also covers potential risks posed by inflation, which could lead to adjustments in treasury yields and impact equity markets. The speaker suggests that while volatility may increase, positive market returns are still expected.

What recent event in the US treasury market is highlighted as significant?

• A new record low in borrowing costs

• The 10-year yield dropping below 1%

• A decrease in treasury auctions

• The 2-year yield reaching 2.22%

What is the relationship between global volatility and the MSCI All Country World Index?

• They are directly correlated

• They are inversely correlated

• They have no correlation

• They are correlated only during recessions

What type of market correction was recently observed?

• A cyclical correction

• A technical correction

• A fundamental correction

• A structural correction

Under what condition could the bond market potentially disrupt the equities market?

• A decrease in global trade

• An increase in unemployment rates

• A significant rise in US inflation

• A drop in consumer spending

What is the expected impact of a dramatic increase in US inflation on the treasury market?

• A decrease in treasury yields

• An increase in treasury yields

• No impact on treasury yields

• A stabilization of treasury yields