Surveillance: Yield Forecast with HSBC's Major
Bloomberg Surveillance
00:00
The Paradox of the Two Year Yield
The lack of safe asset to me is a paradox. Because after all these years of QE trillions and trillions, surely there's plenty of safe asset out there? Well, actually there's too much of the wrong kind of safe asset. You see, the excess reserves created by central banks to buy the bonds in the QE. That's not something that you and I can access at the weekend. So why are people surprised that the two year yield can set the 100 basis points through the money rate? Why would you be surprised about it? Because the price is good. It's factoring in the average policy rate for the next two years. They look like they're almost safe at
Play episode from 07:20
Transcript
