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BoA: Wait to Add Duration in 10s

US OUTLOOK/OPINION
  • Bank of America strategists recommends "investors hold back on adding duration until 10y is closer to 4.50%", currently 4.3012% (+.0532).
  • "Front-end pricing can push higher underpinned by Fed communication shifting more hawkish on recent data, but levels currently are more risk neutral" BoA added. "Bear-steepening can become a risk if higher-for longer challenges macro conviction in dip-buying, compounds interest rate costs, and if QT taper timing gets pushed out."

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