UBS' Baweja Sees Space for U.S. Yields to Decline

The video discusses market expectations regarding the Fed's decisions, focusing on inflation, economic indicators, and real yields. It examines the potential impact of Trump policies on the Fed and markets, highlighting the differences in economic conditions between the US and Europe.

What are the two key data points mentioned that are crucial for assessing the market's status in March?

• Consumer confidence and retail sales

• GDP and unemployment rate

• Interest rates and housing starts

• Core PCE and payrolls

How do real yields in the US compare to those in Europe according to the discussion?

• US real yields are lower at the front end

• Europe's real yields are higher across the curve

• US real yields are higher across the curve

• Europe's real yields are lower at the back end

What is the expected impact of Trump's fiscal policies on US growth according to the discussion?

• A decline in growth due to increased tariffs

• A moderate growth of around 2.4% to 2.5%

• A major fiscal stimulus leading to 5% growth

• No impact on growth

What is the market's perception of the Trump trade as discussed?

• Indifferent to policy changes

• Expecting a major economic downturn

• Skeptical about the fiscal impulse

• Highly optimistic about sustainable growth

What is the anticipated inflation rate in the US as per the discussion?

• 4.0%

• 3.0%

• 2.5%

• 1.7%