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Bank Of America: Easier Financial Conditions Should Mean Wider 30Y Breakevens

US TSYS/TIPS

Bank of America write “the Fed is dovish according to financial conditions. Fed guidance has already supported risk assets, lower rates, & lower rate vol. A dovish Fed & easy financial conditions should see real rates contained & inflation breakevens (BE) supported. We shift our long inflation bias to 30s.”

  • “30y BE is priced perfectly with the Fed's 2% PCE target. We expect upside inflation risk premium will build with an easy Fed.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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