I came across your tweet about the inflation issue today.
"If short end yields are lowered into this type of inflation risk, long end yields will rise and price it. If they try to cap long end yields with YCC then the dollar will fall."
I’m curious to understand if, in this scenario, the volatility of bonds and FX increases, shouldn’t risk assets like Bitcoin and equities benefit from the potential decline in the dollar or am I being too narrow in my analysis?
Great video break down, much appreciated!
I came across your tweet about the inflation issue today.
"If short end yields are lowered into this type of inflation risk, long end yields will rise and price it. If they try to cap long end yields with YCC then the dollar will fall."
I’m curious to understand if, in this scenario, the volatility of bonds and FX increases, shouldn’t risk assets like Bitcoin and equities benefit from the potential decline in the dollar or am I being too narrow in my analysis?