Morning Meeting: 2017 European Outlook

The video discusses the firming of economic data in Europe and the US, highlighting reflation trends and inflationary forces, particularly in Germany. It examines the bond market dynamics, including yield premiums and potential catch-up phenomena. The discussion also covers monetary policy expectations, with insights into rate hikes by the Fed and ECB, and the impact on financial conditions in the euro area.

What is the significance of the ECB's asset purchase program in the context of rising bond yields?

Discuss the expected changes in bond yields and their impact on the financial system.