Australia's 10-Year Bond Yield to Fall Further: JPMorgan

The video discusses the forecast for Australian government bond yields, predicting a decrease in the 10-year bond yield to 1% and the 3-year yield below 1% in 2020. It explores the relationship between cash rates and bond yields, highlighting the Reserve Bank of Australia's (RBA) potential monetary policy actions, including quantitative easing (QE). The discussion covers the limits of conventional monetary policy and the possibility of lower cash rates, as well as the RBA's preference for conventional measures before considering unconventional policies like QE.

What is the predicted 10-year bond yield in Australia for the first half of 2020?

• 1.5%

• 0.5%

• 1%

• 2%

What is the expected terminal cash rate according to the forecast?

• 1.25%

• 1%

• 0.75%

• 0.5%

What is the RBA's stance on quantitative easing (QE) as the cash rate approaches low levels?

• They are fully committed to implementing QE immediately.

• They plan to increase the cash rate instead.

• They have ruled out QE entirely.

• They are uncertain and exploring options.

What is the RBA's approach to further rate cuts in the current economic climate?

• They are aggressively cutting rates without caution.

• They are feeling their way cautiously.

• They have stopped considering rate cuts.

• They are increasing rates instead.

What does the RBA hope to achieve before considering unconventional monetary policies?

• A higher currency value

• Increased government fiscal stimulus

• A decrease in government spending

• Immediate implementation of QE