HSBC's Major Says 10-Year Yield Could Go Below 2.1% by Year End

The video discusses the impact of trade on markets, focusing on the 10-year Treasury as a key indicator of global growth. It highlights the decline in growth forecasts and the implications for Treasury yields. The discussion includes potential policy responses, such as lower interest rates, and their effects on the bond market. The video concludes with a forecast for the US 10-year yield, suggesting it could fall below 2% due to expected rate cuts in 2020.

What role does the 10-year Treasury play in the context of future growth?

• It serves as a discounting mechanism for future growth.

• It acts as a mechanism for immediate market reactions.

• It reflects the current state of the stock market.

• It is a tool for predicting short-term economic changes.

How has the global growth forecast changed over the past year?

• It has remained stable.

• It has increased by 1%.

• It has increased by 2%.

• It has decreased by 1%.

What is the expected policy response to the current global growth outlook?

• Increased government spending.

• Higher interest rates.

• Immediate economic stimulus.

• Lower interest rates for a longer period.

What is the forecast for the US 10-year yield by the end of the year?

• Around 2.1%.

• Below 1%.

• Exactly 2.5%.

• Above 3%.

Why might investors consider buying bonds ahead of expected rate cuts?

• To diversify their portfolio.

• To capitalize on higher yields.

• To avoid market volatility.

• To benefit from potential yield decreases.