US 10-Year at 4% More of a Floor Than a Ceiling in 2023: Wells Fargo's Nelson

The video discusses the need for higher real yields to combat inflation, projecting a 10-year nominal yield of 4.25% to 4.75% in early 2023. It compares the current economic environment with 2018, highlighting aggressive central bank policies and quantitative tightening. The Fed is expected to raise rates to 5.25% in 2023, with no cuts anticipated. The discussion also covers the yield curve, emphasizing higher future rates due to supply shocks and structural inflation.

What are the implications of quantitative tightening by central banks on future yields?

Discuss the potential risks associated with the current economic policies and their impact on inflation over the next 5 to 10 years.