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BofA: The Rates Sell-Off And The USD Rally In A Historical Perspective

CROSS ASSET

Bank of America note that “long-term trends in yields and FX, the current U.S. policy mix of tight monetary and very loose fiscal and U.S. exceptionalism help explain the recent rates sell-off and the USD rally.”

  • “What happens next depends on the landing scenario and how sticky inflation will be during landing, affecting the USD both through rates and risk sentiment.”
  • “In the longer term, we see risks of yields remaining relatively high and the USD strong compared with recent history, even if both lower than current levels.”
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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