Bond Market Is Focal Point of Trade War for RBC’s Schaffrik

The transcript discusses the uncertainty surrounding trade deals and their impact on financial markets. It highlights the difficulty in predicting the first signs of a trade deal, with a focus on Treasurys and bond yields as potential indicators. The conversation also covers the implications of a phase one trade deal, suggesting it may provide temporary relief from escalating trade tensions, especially in the context of upcoming US elections.

What is the main challenge in predicting the first signs of a trade deal?

• The fluctuating nature of the situation

• The complexity of trade negotiations

• The influence of other countries

• The lack of market data

How are Treasurys expected to react to a trade deal?

• Bond yields would increase

• Bond yields would remain stable

• Bond yields would fluctuate randomly

• Bond yields would decrease

What is the expected impact of a trade deal on the equity market?

• Equity markets will remain unchanged

• Equity markets will become volatile

• Equity markets will decline

• Equity markets will rise

What does a phase one trade deal imply for future trade tensions?

• Trade tensions will escalate

• Trade tensions will be eliminated completely

• Trade tensions will remain the same

• Trade tensions will be reduced slightly

How might a phase one trade deal affect the market ahead of the next US elections?

• It will cause market instability

• It will lead to increased market volatility

• It will have no effect on the market

• It will provide market stability