Eaton Vance's Stein Sees Higher Treasury Yields, Weaker Dollar

The video discusses the current state of dollar-yen trading, highlighting the lack of significant movement in the yen and the focus on Japanese inflation-linked bonds and equities. It explores the potential for higher yields and a weaker dollar, contingent on global growth and moderate Fed rate hikes. The discussion includes strategies for managing FX risk in fixed income investments, emphasizing the importance of currency, credit spreads, and local interest rates. The video concludes with an analysis of yield spreads, predicting a steeper curve as growth and inflation rise, and the Fed's approach to inflation targeting.

What has been the recent trend in the yen's performance according to the Eaton Vance Global Macro Strategy?

• The yen has been weaker in recent days.

• The yen has remained stable with no significant changes.

• The yen has been stronger in recent days.

• The yen has been highly volatile with large fluctuations.

What is one of the key factors considered in the Eaton Vance Global Macro Strategy when investing in fixed income?

• Real estate prices

• Local stock market trends

• Currency risk

• Commodity prices

How does the Eaton Vance strategy approach FX risk in markets where they like the duration but not the currency?

• They increase their investment to offset the risk.

• They focus on short-term investments only.

• They avoid investing in such markets.

• They hedge the currency risk.

What is the current state of the 5-30 yield spread according to the transcript?

• It remains unchanged.

• It is steepening significantly.

• It is highly volatile.

• It is flattening.

What is the expected trend for the yield curve as growth and inflation pick up?

• The curve will flatten.

• The curve will become more volatile.

• The curve will remain unchanged.

• The curve will get steeper.