Should Bond Investors Be Running for Cover?

The video discusses the unexpected market reactions to the Federal Reserve's decision not to raise interest rates, highlighting the Fed's data-dependent approach and the economic readiness for a rate hike. It also examines the Bank of Japan's new yield curve control tool, its implications for other central banks, and the resulting uncertainty in global bond markets. The credibility of the Bank of Japan is questioned due to the yen's appreciation despite efforts to weaken it.

What was the implied probability of a rate hike before the Fed's announcement?

• 10%

• 22%

• 30%

• 50%

How did the market react to the Fed's decision not to raise rates?

• With surprise

• With relief

• With anger

• With indifference

What new tool did the Bank of Japan introduce to control yields?

• Interest rate cuts

• Yield curve control

• Quantitative easing

• Currency intervention

What impact did the Bank of Japan's actions have on the yen compared to the US dollar?

• It depreciated

• It appreciated

• It remained stable

• It fluctuated wildly

What concerns were raised about the credibility of the Bank of Japan?

• Inflation control

• Currency strength

• Yield curve management

• All of the above