Panmure Gordon's French Sees Value at Long End of U.S. Yield Curve

The video discusses the current state of the treasury market, noting that recent bond yield declines are not indicative of a strong rally. It highlights the impact of global stock market turmoil and the S&P 500's movements on bond yields. The discussion shifts to the US yield curve, emphasizing its value despite market nervousness and the potential for liquidity flow if the global economic outlook worsens. The video also covers expectations around the Federal Reserve's monetary policy, suggesting a gradual approach due to differing central bank attitudes and the spillover of US economic demand into the global economy.

What has been the trend in bond yields over the past five weeks?

• They have been rising steadily.

• They have remained stable.

• They have been declining.

• They have been fluctuating wildly.

What is one reason for the nervousness in the long end of the US yield curve?

• An increase in risky asset investments.

• A broad-based deterioration in the global economic outlook.

• A lack of liquidity in the market.

• A strong global economic outlook.

How does the bond market perceive the Federal Reserve's actions for 2019 and 2020?

• The Fed will maintain the current policy.

• The Fed will loosen monetary policy significantly.

• The Fed will not tighten at all.

• The Fed will aggressively tighten.

What is the implication of a gradual path by the Fed on the global economy?

• It will isolate the US economy from global influences.

• It will allow demand to spill over from the US to the global economy.

• It will cause a significant economic downturn.

• It will lead to a rapid economic growth worldwide.

What is the market's attitude towards the Fed's gradual path?

• The market is supportive.

• The market is confused.

• The market is indifferent.

• The market is opposed to it.