Yields Are Too Low for Where We Are in the Cycle, Says Panmure Gordon’s French

The video discusses the weakest bid to cover ratio in a decade, exploring factors like Chinese investor absence and low yields. It examines market yield, investor sentiment, and the potential for rate cuts or QE4. The impact of hedging costs on foreign investment is considered, alongside trade tensions and Fed rate cut expectations. The discussion extends to trade talks, the Fed cycle, and global economic conditions. Finally, it addresses inflation, yield curve targeting, and central bank policies, highlighting the need for specific policy measures.

What is one reason mentioned for the weak bid-to-cover ratio in the US treasury market?

• Increased foreign investment

• Strong economic growth

• Low yields

• High inflation rates

What factor might influence the potential for better yields on the 10-year treasury?

• Stable oil prices

• Rising unemployment

• Decreasing trade tensions

• Increasing inflation

According to the discussion, what is a possible outcome if economic growth picks up?

• Yields may increase

• Inflation may stabilize

• Yields may decrease

• Interest rates may fall

What challenge is Layla Brainard addressing with yield curve targeting?

• Decreasing GDP

• Low core inflation

• Rising interest rates

• High unemployment

What does the discussion suggest about the Fed's approach to policy changes?

• They are focusing on foreign markets

• They are reducing interest rates

• They are exploring new tools and specifics

• They are likely to implement immediate changes