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Bank Of America Lift End Of '21 10-Year Yield Forecast

US TSYS

Friday saw Bank of America research note that their "2021 forecasts were already well above consensus and the forwards, though the gap has narrowed as the market caught up to our views. We now reset our rate forecasts further above consensus due to expectations for an improvement in longer-run growth and inflation expectations supported by: (1) persistent bending of COVID case curve likely in 2Q21; (2) highly accommodative fiscal and monetary policy; and (3) very easy financial conditions. We revise our year-end '21 10-Year UST rate forecast higher from 1.50% to 1.75% and see more scope for 2s10s curve steepening."

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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