Bridgewater's Patterson Sees U.S. Bond Yields Going Higher

The video discusses the current state of the US 10-year yield and explores factors that could lead to an increase to 2%. It highlights the impact of fiscal stimulus, the economic recovery tied to vaccine rollout, and the new Fed framework. The discussion concludes with market implications, suggesting support for cyclical assets but a bearish outlook for bonds.

What is the current state of the US 10-year yield, and what is a significant factor that could drive it higher?

• The yield is at 1.6%, and a lack of stimulus could drive it higher.

• The yield is at 1.6%, and an extraordinary amount of stimulus could drive it higher.

• The yield is at 2%, and a decrease in stimulus could drive it higher.

• The yield is at 2%, and an increase in stimulus could drive it higher.

How is the current stimulus expected to interact with the US economy?

• It is expected to reverse the recovery.

• It is expected to have no impact on the recovery.

• It is expected to slow down the recovery.

• It is expected to support an already recovering economy.

What is a major uncertainty affecting the economic recovery?

• The rate of inflation.

• The amount of foreign investment.

• The level of interest rates.

• The speed of the vaccine rollout.

What is the Federal Reserve's current approach to economic recovery?

• They want to be ahead of the curve.

• They want to rapidly increase interest rates.

• They want to decrease fiscal stimulus.

• They want to be patient and behind the curve.

What is the predicted impact on cyclical assets and bonds due to the current economic conditions?

• Cyclical assets are expected to decline, and bonds are expected to rise.

• Cyclical assets are expected to rise, and bonds are expected to decline.

• Both cyclical assets and bonds are expected to rise.

• Both cyclical assets and bonds are expected to decline.