What Higher Bond Yields Mean for Markets, the Dollar

The transcript discusses the implications of nominal bond yields surpassing economic growth, which would be a significant change. It explores the impact on the US dollar, particularly against the Japanese yen, and the role of hedging by Japanese investors. The conversation also covers the potential feedback loop involving emerging markets and oil prices. The discussion shifts to Treasury yields, the Fed funds rate, and global investment trends, highlighting the pressure to keep yields lower than expected. The analysis concludes with insights into speculators' positions on Treasurys and the normalization of yields post-financial crisis.

What would be considered a game changer in the context of nominal bond yields and economic growth?

How does the current environment affect the dollar, particularly against the Japanese yen?

What is the significance of the correlation between Dollar Yen and equities in the current market?

What does the inverted yield curve indicate about the risk of recession?

What does the record level of speculators net short Treasurys positions suggest about market expectations?